One very interesting research tool I bought years ago and still use is the TradeMiner PRO. You can buy it for stocks, commodities and FOREX. I mostly use it for stocks. What they do is look at historical EOD prices and calculate “If you have traded XYZ on this day during the past 10 years you would have been profitable XX % of the time if you held the stock for X days.” I have done some back-testing and live trading and it works pretty well. As with ALL TOOLS I still believe in the “art of trading”. You need to understand that TradeMiner is NOT a trading system. It is a clever research tool. TradeMiner PRO Review
Here is how I use it on a list of ETFs to pick a short list of possible high-probability trades I can further research and decide on:
- Month of March – at least 10 year analysis
- Having won >80% of the time
- 1-5 Trading days (Short is better for ETFs)
- Risk/Reward Ratio >1:2 is desired
- Score in the green > 3.00
In one case I created several different scenarios – and by picking the top results you can see that 95% and 12 trading days is the optimal for these ETFs. Now I pick the top one and schedule it for a trade on March 27 – April 14. Notice the RR is 1:4.7. So if you trade a scenario like this over and over you should have 4 wins vs 1 loss. This is if you stick to the schedule and NOT take profits if you see profits. You wait until 14 April and close the trade. Whatever the result is at that time. This article provided by: Investing for Retirement
