DATA

In this blog post, I want to discuss the importance of data and how it can aid in making forecasts. I discovered the data in my trading only several months ago, and it has brought about substantial changes. Taking data, analyzing it, and extracting clues from it has become my bread and butter.

When I start trading in the morning, I fetch my stock data and calculate metrics like HOD. Based on the mean and the deviation from the mean, I plot a range that provides me with an edge. If an event occurs outside this range, I treat it as an outlier and ignore it. Below, you can see the HOD of SXTC 0.00%↑ , displaying a clear range. Each data point corresponds to a specific gap + volume level.

In the past week, I've observed several people on FinTwit discussing how plays like MLGO 0.00%↑ did not work for them and what they could have done better to catch them. In my opinion, this is the wrong approach. To me, MLGO 0.00%↑ was a clear outlier in the data, and I wouldn't have been interested in catching it.

Note that attempting to catch these outliers all the time will lead to losses in the long term (at least for me). What I'm looking for is repeatability, and I suggest you do the same.

Thanks,

Finn