Creating a "Market Bias" before starting a Trading Session
a thread 🧵
1 ) Quick context
If my strategy is "in sync" with my bias:
• I should be trading more frequently
- I should be betting bigger sizes
If my strategy is "out of sync" with my bias:
• I should be trading less frequently
• I should be betting smaller sizes
Basically step on the gas during "easy mode" and step on the brakes during "hard mode"
3) Directional Bias
If you are trying to shoot an arrow at red or green, then it's going to be:
• easier to hit green, harder to hit red
• harder to miss green, easier to miss red
Same goes for trading.
• if literally everything is pumping like crazy, taking longs is naturally going to bit easier to hit into a winning long. I won't need perfect timing.
• and also it's going to be a lot harder to snipe a good short. It's going to need really perfect timing from me.
3) Structural Bias
I like to compare how many coins are Trending v.s. Ranging.
• note: I'm looking in BIG NOTICEABLE skews, not small ones.
2 platforms I personally use for this
• @velo_xyz
• @OrionTerminal
4) How the bias impacts the "Minimum Grade before Entry"
Returning back to the arrow-shooting example, imagine you weren't the one shooting the arrow.
Imagine you had to trust someone to shoot the arrow for you.
Explanation ↓
5) If it's "Easy" for a specific strategy:
• I can get away with B+ setups
If it's "Hard" for a specific strategy:
• I can only get away with a perfect A+ setup
Going back to the arrow shooting analogy:
• Market Conditions are the target board.
• The Strategy is the one I'm trusting to shoot the arrow
↓
6) If you happened to be one of the people who found this thread useful,
you are welcome to copy Timmy
(he's a 300 IQ individual)
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