The Data Trade Process

Trading Systems
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Hello baby pips community.

Welcome to the Data Trade Process.

I’m noticing a trend where new trader relying solely on technical analysis. I believe you need more than this if you are wanting consistent gains throughout your life.

This is not me saying technicals don’t work, I myself use some basic technical analysis for entering trades. What I would not do is rely on them for a longer term bias. In my opinion the market does not care about your 200 day moving average. These things work until they don’t and a change in growth/inflation will destroy your trend lines. These basic indicators have a time and place but should not be the only tools in the toolbox. again this is just my opinion.

I have a top-down fundamental process utilizing a range of tools. From COT reports compiled with Z-Scores to Implied volatility for currencies pulled from the options market. Couple this with some solid quantitative indicators I have developed over time and we have a reliable, repeatable unbiased process… The Data Trade Process.

I will be posting my analysis and data here including my trading results which will be posted at the end of each week.

If you have any questions I’m happy to help.

Thanks

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Here is my implied vol and COT data for this week. COT is update every Tuesday and implied vol Tuesdays and Thursdays.

COT
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Data Trade

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Here are my trading results YTD

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Data Trade

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Current open positions
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Data Trade

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Long XTI/USD - Take Profit = +2%

With growth forecast to slow and inflation accelerating, I’m bullish on oil and have been for all of Q12019.

The bread and butter of the Data Trade process is the dynamic range that I calculate using price volume and volatility. I’m aware volume is controversial and I’m not here to debate that with anyone, it’s just how I do things.

The range moves daily as the data changes. Don’t think of it as support and resistance that price bounces off. The idea is to provide a quantitative compass to help manage risk, are we high or are we low? No opinions here just math.

I buy at the low end of the range and sell at the top inline with my fundamental bias.

Taking all this into account im holding my XTI/USD long. We are currently at the top end of the range so im managing risk and locking in +2%. If my take profit is hit then ill wait it out until we touch the low end and buy some more when price action gives the signal.

oil trade
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Data Trade