Daily Bias, Backtesting and a Loss Recap

Daily Bias, Backtesting and a Loss RecapLesson 8 of 135 min read

Fewer days

The objection that sitting out release days is a weakness, answered plainly, plus what the same release does to two different markets.

Two of the four markets are out and the day has not started. This is the objection that always follows.

The objection

It is put as a criticism. A trader who sits out every release day is avoiding the market rather than trading it, and is missing the days that move most.

The second half of that is true. Those days do move.

The days you refuse are often the days with the largest moves in them.

The answer

Module 44 gave the arithmetic: a day you did not trade cannot produce a loss.

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