Saturday, August 9, 2008

My "Research Goals"

Focused, targeted research is key to building a winning strategy. These are specific goals I plan to accomplish during the research phase of my strategy.
  • Identify timeframe I will trade (will multiple timeframes be studied as well?)
  • Identify pairs I will trade
  • Identify best times or markets for trade entry
  • Identify best days for trades
  • Identify the sweet-spot window of time successful setups can be in-trade (before forcing an exit)
  • Identify conditions that could occur after setup, but before entry, that indicate setup no longer valid
  • Classify the type of strategy (breakout, etc.)
  • Identify specific patterns that occur in winning trades
  • Be able to identify/calculate high-expectancy, low-risk trades vs. others (Van Tharp)
  • Find a combination of indicators that complement and reinforce good trade setups
  • Identify any criteria that might indicate trade setups will not work (ie, impending news or other connections)
  • Develop an objective/unbiased method to collect data (with intention to assimilate later)
  • Develop a protocol for assimilating data into something useful (ie, statistical significance)
  • Notate my research procedures so they can be mechanically repeated for future strategy development

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