Profitable Trading 101

Ideas by Analytical Thinkers and Algorithmic Traders

Part 1 - Financial markets are inherently probabilistic

Financial markets are inherently probabilistic. Directly forecasting trends or specific pricing levels makes little sense compared to building a probabilistic view of the future, from which concrete trading decisions can be made. The TPO (time-price opportunity) profile, normalized as a price probability distribution, is a great example of this kind of forecast - and an interesting tool to work with. It makes you ask questions and see things you did not before.

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...to be continued.

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