Statistical vs. Effective Edge

Statistical vs. Effective Edge

201604.24

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Statistical vs. Effective Edge

by Bo Yoder in Articles

One of the toughest concepts for people to grasp…

Is how we can achieve such consistent high win rates in a market that the rest of the trading world universally declares as “terrible”.

The secret is simple…

We don’t spend any time looking for market opportunities that are likely to make us money…

We instead put our total focus on finding and identifying what trades are not likely to LOSE US money!

I know that sounds simple, but to shift you’re thinking in this way will create a profound shift in your perspective.

You will no longer justify a low probability entry as “OK” because of the huge reward potential it has…

You will no longer have to experience the manic-depressive swings in emotion as your account value bounces around like a kid in a bouncy castle at a birthday party.

Many strongly believe that a sustained win rate of 80%-90% is totally IMPOSSIBLE!

In fact, to claim that it IS possible makes you a fraud, or a liar or worse…

Well…

It IS POSSIBLE…

And not just by somebody like myself who has 20 years of experience in this business.

Our traders routinely experience these levels of sustained profitability and for many extreme win rates.

This video explains why this is not at all impossible and just requires a shift in perspective from targeting gains to ruthlessly killing off losers BEFORE you get involved and stuck with yet another loss.

About author

Bo Yoder

Bo is a professional career trader, author, and consultant to the financial industry on matters of market analysis, trading and risk management.

He has an MBA from The Boston University School of Management.

Bo has been a featured speaker internationally at industry expos and has developed a reputation for the ability to trade live in front of an audience as a real-time example of what it is like to trade for a living, using a real money account.

During his focus on trading in real-time, he simultaneously talks the audience through his thinking, analysis, and a moment by moment walk-through of what is evolving and the actions he's taking until his trade has resolved.

In addition to his two books for McGraw-Hill, Mastering Futures Trading, and Optimize Your Trading Edge (translated into German and Japanese), Bo has written articles published in top publications such as TheStreet.com, Technical Analysis of Stocks & Commodities, Trader’s, Active Trader Magazine and Forbes to name a few.

An active trader since 1997, Bo worked with Roger to learn his Methodology in 2011. He now uses it as his base for analyzing, filtering and managing his trades and investments.

Bo is an active writer and mentor and acts as Head Trader and asset manager for our proprietary trading operations..

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