Finding a Trading Edge

It needs a lot of journaling. We first need a backlog of 100's of trades. Then:

• Sort trades by PnL
• Take 50 best winners
• Take 50 worst losers
• What makes them the same
• Create rules to eliminate losers
• Create rules to increase winners

We then have to find patterns. An example pattern can be: First 30 minutes of day, above vwap, above 100 ema, atleast 100k vol on 1min candles, intraday gain of "x" amount.
The same applies to losers: Never long below vwap, never trade first 10min after open, never trade FOMC, only trade stocks between $1-$10, never trade if stock is red on day, wait 10min after any halt to trade ticker, never add to loser, always obey stop.

META

Status:: #wiki/notes/mature
Plantations:: Trading System
References:: Babypips