Trade Ideas

Event-driven trading strategy

This is an interesting concept from a small group of traders who have studied the market price action directly preceding 700 risk events over the last 7 years. They try to get a sense of what market expectations and positioning is based on what happens in the 60 minutes leading up to a risk event and they then look for trading opportunities directly after the event. They tell me that they will trade after 16% of risk events, the others they leave alone. I’m keen to see their strategy returns!

I’ll let you know if any trade ideas emerge but it never ceases to amaze me the lengths people will go to, to try and gain a competitive advantage. Good on them.

  1. Sure, These type of studies / analysis keeps your interest as finding a pattern and implementing trade plans based on these is a better approach rather than wild guessing.

    their is no substitute to the experience like you have! but what is experience ? It is simply understanding patterns recorded in your memory and planning trades based on them!

    Only way to cover that gap with experienced trader is “back testing ”

    please keep updated

  2. Will do Asad, I must admit I’m not 100% convinced that you can get enough info from the numbers alone, I think you need to be part of the market and recording information, but perhaps they do this already? I’ll be keeping track of them for next 6 weeks or so and will let you know as I learn more.

  3. I agree Sean. You can not get enough info from the numbers alone. That’s why Elliott Theory is a huge lie. It’s just labeling waves after they have formed 🙂

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