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Excalidraw Data

Text Elements

  1. Price

  2. Latency

  3. Not enough information

  4. Noises

Biases Risk Profiles

  1. Indicator

Quantitative

Signals

Confluence

Portraying opportunities

Methods

Market Structure

SMC

Trend Lines/ Ranges

Chart patterns

order block Fair value gap Break of structure change of characters liquidity

Market Cycles

Wyckoff:

  1. Accumulation
  2. Distribution
  3. Markup - Markdown (momentum trend)

What is happening?

The profile of what is happening?

Why is it happening?

What would happen next?

  1. Principles:
    1. Follow the trend

Direction/Bias (The higher probability of where the price will go)

  • value of substracting information

Price Action Support resistant Supply and Demand Fake Out

Importancy of the price methods?

  1. Avoiding typical (bigger structure) movement.
    • for an example, using indicator, we can identify our trading entry. But since we dont have information regarding the price action analysis, we just entry. which then the indicator entry still valid, but maybe with lower RR and also maybe have more energy for different re-etnry.

Ranges

Ranges

Objectives

Implementation

Charts

Charts

Charts

Charts

Understanding

Information

  1. Market

Assumption

Heuristic, Biases, Fallacy

Interpretation

  1. Information is your source of data.

    • if you categorize these data, there’s only few categories of data source you can use.

    • By ensuring you’re using the same data to formulate your judgement, you reducing the inconsistencies of the system overall.

    • the goal/idea here is to be consistent in collecting & utilizing the valid data sources.

    • by using the same data over and over again, no matter how much you change your interpretation and judgment, you will produce the same output.

  2. Understanding is your ability (methodology) to use the data.

    • Understanding not yet become an interpretation, however it’s a skill/learned/practice.
    • it’s also the most susceptive to corruptions
    • Understanding is your capacity to make use the data to come up with an interpretation.
    • Understanding requires following the methodology arguments, recognizing key points, and comprehending the basic structure and content of the methodology.

  3. Interpretation is your ability to figure out the significance and implication of the understanding.

    • Interpretation is your ability to come up with
    • this level requires reading between the lines, identifying underlying assumptions, and drawing connections that may not be explicitly stated. Interpretation aims to uncover the market opportunities and the matching context of the opportunities, and your trading operation.

  4. Judgement is your ability to have your own opinions, hypothesize of the unveiled data.

    • This is where you come up with a trade ideas, an assumption of what’s happening.
    • Which then been test out through trading execution.
    • the end of your first trading system is here, the output of the this phase of trading system is to produce a sound trade idea.
    • After understanding and interpreting the data, the trader forms their own opinions about the validity, completeness, and significance of the methodology they use.

required work:

  1. Filtering
  2. Consistency in usage of data
  3. Subtracting instead of adding (via negative)

required work:

  1. Reading
  2. Understanding theoretically
    • argumentative, critical
    • epistemology
  3. Artifacts, references
  4. Be a librarian, and a student.

required work:

  1. Some trades are just probabilistic. If it doesn’t work, it doesn’t.
  2. Trying to explain why it doesn’t work using your current judgement, interpretation and understanding.
  • won’t help you come up with better judgement. Instead you would just redoing everything
    • however, differentiate optimizing judgment vs. execution.
    • if your judgement somewhat correct but poorly executed, this should be optimize.
    • if your judgement is wrong, and even executed greatly. This should be probabilistics.

Methodology:

  1. you should ask:
    • what’s happening with the price?
    • what’s happening with the indicator?
    • what should this means?

Methodology:

  1. you should ask:
    • what’s the price is telling me here?
    • what’s the indicator is telling me here?
    • what should this means?

Risk:

  1. Misinterpretation (Worst)

  2. No interpretation

  3. Heuristic, Biases, Fallacy

  4. Misleading

  5. Noises

  6. Late

required work:

  1. Reading
  2. Understanding theoretically
    • argumentative, critical
    • epistemology
  3. Artifacts, references
  4. Be a librarian, and a student.

Methodology:

  1. you should ask:

    • what if it’s true?
    • will it be profitable?
    • What of it?

  2. Price

  3. Latency

  4. Not enough information

  5. Noises

Biases Risk Profiles

  1. Indicator

Quantitative

Signals

Confluence

Portraying opportunities

Methods

Market Structure

SMC

Trend Lines/ Ranges

Chart patterns

order block Fair value gap Break of structure change of characters liquidity

Market Cycles

Wyckoff:

  1. Accumulation
  2. Distribution
  3. Markup - Markdown (momentum trend)

What is happening?

The profile of what is happening?

Why is it happening?

What would happen next?

  1. Principles:
    1. Follow the trend

Direction/Bias (The higher probability of where the price will go)

  • value of substracting information

Price Action Support resistant Supply and Demand Fake Out

Importancy of the price methods?

  1. Avoiding typical (bigger structure) movement.
    • for an example, using indicator, we can identify our trading entry. But since we dont have information regarding the price action analysis, we just entry. which then the indicator entry still valid, but maybe with lower RR and also maybe have more energy for different re-etnry.

Ranges

Ranges

Objectives

Implementation

Charts

Charts

Charts

Charts

Understanding

Information

  1. Market

Assumption

Heuristic, Biases, Fallacy

Interpretation

  1. Information is your source of data.

    • if you categorize these data, there’s only few categories of data source you can use.

    • By ensuring you’re using the same data to formulate your judgement, you reducing the inconsistencies of the system overall.

    • the goal/idea here is to be consistent in collecting & utilizing the valid data sources.

    • by using the same data over and over again, no matter how much you change your interpretation and judgment, you will produce the same output.

  2. Understanding is your ability (methodology) to use the data.

    • Understanding not yet become an interpretation, however it’s a skill/learned/practice.
    • it’s also the most susceptive to corruptions
    • Understanding is your capacity to make use the data to come up with an interpretation.
    • Understanding requires following the methodology arguments, recognizing key points, and comprehending the basic structure and content of the methodology.

  3. Interpretation is your ability to figure out the significance and implication of the understanding.

    • Interpretation is your ability to come up with
    • this level requires reading between the lines, identifying underlying assumptions, and drawing connections that may not be explicitly stated. Interpretation aims to uncover the market opportunities and the matching context of the opportunities, and your trading operation.

  4. Judgement is your ability to have your own opinions, hypothesize of the unveiled data.

    • This is where you come up with a trade ideas, an assumption of what’s happening.
    • Which then been test out through trading execution.
    • the end of your first trading system is here, the output of the this phase of trading system is to produce a sound trade idea.
    • After understanding and interpreting the data, the trader forms their own opinions about the validity, completeness, and significance of the methodology they use.

required work:

  1. Filtering
  2. Consistency in usage of data
  3. Subtracting instead of adding (via negative)

required work:

  1. Reading
  2. Understanding theoretically
    • argumentative, critical
    • epistemology
  3. Artifacts, references
  4. Be a librarian, and a student.

required work:

  1. Some trades are just probabilistic. If it doesn’t work, it doesn’t.
  2. Trying to explain why it doesn’t work using your current judgement, interpretation and understanding.
  • won’t help you come up with better judgement. Instead you would just redoing everything
    • however, differentiate optimizing judgment vs. execution.
    • if your judgement somewhat correct but poorly executed, this should be optimize.
    • if your judgement is wrong, and even executed greatly. This should be probabilistics.

Methodology:

  1. you should ask:
    • what’s happening with the price?
    • what’s happening with the indicator?
    • what should this means?

Methodology:

  1. you should ask:
    • what’s the price is telling me here?
    • what’s the indicator is telling me here?
    • what should this means?

Risk:

  1. Misinterpretation (Worst)

  2. No interpretation

  3. Heuristic, Biases, Fallacy

  4. Misleading

  5. Noises

  6. Late

required work:

  1. Reading
  2. Understanding theoretically
    • argumentative, critical
    • epistemology
  3. Artifacts, references
  4. Be a librarian, and a student.

Methodology:

  1. you should ask:
    • what if it’s true?
    • will it be profitable?
    • What of it?

Execution

The Execution Criteria 1. High Probabilistic Setup: 60%. 2. Asymmetric Risk (Risk-to-Reward). 3. Plays with our Timeframe (stick to system environment).

  1. Personality
  2. System Rules

The Execution of the Execution 1. FOMO, enter it a little bit early. Thuss SL bigger than what it shoould be 2.

As a trader, you also have a fallacy of an operator:

  1. Your personality
  2. Your routine/habits
  3. Your psychology
  4. Your life situations
  5. Your environments

These also should be determine

I am a systematic/discretionary trader.

My methodologies are very structured, systematic and organize.

But I’m lenient in making decisions, and taking trades.

I do however discipline in identifying trade executions, probabilities, asymmetrics risks.

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