How to find beating the market trading strategies
More than 80% of the traders lose money while trading!
And since it’s a “zero-sum game”, that means that all the money they lose, a group of 10%-20% profiting.
That’s insane! There’s a group of elite traders who keeps gaining money (and a LOT of it).
Why so many lose money?
There are many reasons why people lose money while trading like aiming at quick money, non-diversified portfolios, herd mentality, etc…
But 2 main reasons for losing money are:
Entering at the end of a trend, just before a drop
Psychological issues preventing them to sell on time – and then price drops
Both can be solved by using a risk management strategy.
The 2 main rules in successfully trading are:
When talking to daily-basis traders, the one thing that kept coming up is buying low and selling high. The second thing was to avoid ‘feelings influence’, meaning to sometimes close position while losing money in-order to release funds for other, more successful, trades
One is entering strategy, the second is the exit strategy.
You should buy when it’s low, and sell when it’s high. But if high never comes? Avoid ‘feeling influence’ and sell, even at lose if necessary.
It’s nearly impossible to plan, test and optimize a risk management strategy to protect your funds against loses.
It’s simple math.
In order to design a successful trading strategy when trading stocks, forex, commodities, it doesn’t matter! you HAVE to have a valid exit plan.
It’s well written on numerous books, websites, traders’ blogs and been proved over and over again –
No one can decide correctly when to close a position based on intuition only. It’s not possible!
This app gives you exactly that!
You can easily find beating the market trading strategies
You can see when it’s the best timing to execute
How does it work?
Our big-data science algorithm is the key
We use complex coding in various program languages, along with linear-algebra and statistic models to generate insights about the market:
Every time you press “Run”, a special back-end software opens tens of thousands virtual positions
asking them all one-by-one these 2 questions:
1. Did you hit the profit line or the stop line first?
2. How long did it take?
Over 1 billion data instances cooperate together to generate specific insights about each strategy.
All of this in a few seconds.
For a comparison: 1 run = Can be months of an average analyst’s work on excel sheets.
Use it when you’re analyzing a stock, but BEFORE you buy
Once you buy a stock and trade your money into a traded-asset, you’re exposed and vulnerable to every-little-glitch that happens in the market.
So as a trader, you want to stay as little time as you can and exit with the highest available profit – Thus this is the problem we’re here to solve: Timing.
How to use this tool?
It’s very simple.
(Image from our app)
Choose a stock / company. For example: Apple (SYMBOL: AAPL) or Tesla Inc. (SYMBOL: TSLA) or Facebook Inc (SYMBOL: FB), etc.
Choose a starting strategy. For example: Take profit: 5% & Stop Loss: 5% or Take Profit: 10% & Stop Loss 10%. It can be any set of numbers you want.
After clicking on start, the app starts do its magic. It typically takes up to few seconds.
In results section: This is the actual market change over the past year. If you were an investor, that will be the worth of your portfolio.
On the other hand – this is your portfolio worth if you trade this stock with that strategy.
Success rate and chart – Click on any of the numbers to see more details on how they were determined. The graph shows you on the previous year’s chart all the points where this strategy succeeded in exiting in profit (marked in green) and all the positions ended up in a lose (marked in red).
Strategy meaning: using “Take Profit” and “Stop-Loss” lines
These lines are measured in percentages from the last price of the asset.
For example, if company’s stock “A” is trading at $100, then 5% take profit will be at price $105 – meaning: If you buy at $100, and the price will reach $105, your broker will automatically execute a sell position at profit for you. No need for you to do anything.
Same goes for stop loss, only in that case you close position at a loss.
Sounds simple, right?
But how do you know how much percentage should be on take profit? And how much on stop loss?
When trying to seek for information over the internet you find that no one really knows the answer. Some say some kind of rule of thumb, other try to say exact numbers that according to them usually work.
How do they know?
They don’t, because not only every asset is different than the others, but also over time the same asset can act differently – sometimes go up, and sometimes down.
That’s why strategies vary and change. A lot.
What’s the difference between an investor and a trader?
Investor is the one who does only one action: depositing money every time he can, and buying more and more shares. He NEVER close these positions and his exit plan is simple: 20 years from now – we’ll see. This is a good strategy if you do not need those funds. At least not at this moment.
A trader is the one who buys (opens a buy position) and when it’s time to close it – he does it. Regardless if it’s a win or a lose!
A trader knows the hard truth: Everyone lose. Everyone. But only the ones who can navigate the right path between losing as little and winning as much will become on the right side of the money earnings map.
Before using this app: How to check if a certain strategy is worth-trading or not?
Many traders use Excel sheets to monitor their trades, others use their broker’s trading platform dashboard to generate insights regarding their trades..
2 major problems when trying to analyze trading strategies:
Can take months just for analyzing a single trade – It can be done only after it had happened, meaning you had to develop a live test and only afterwards you can analyze your tradings.
You can test only ONE strategy at a time!
After using this app: Easily develop beating the market trading strategies:
Analyze as many strategies you’d like until you find the best one fitting to your needs
Every strategy-analyzing takes several seconds
Why finding beating the market strategies is so important?
Simply because trading an empirical-proven strategy out-performs all other trading / investing methods.
Why success rate is so important?
The success rate not only give you a crucial insight that helps calculate how much we’re beating the market in comparison to the actual market change, but it’s also a major advantage over other traders, that can be used like so:
Last 7 days – Can be used as a momentum trade – We show you how many times this trading strategy succeeded over the past week [Premium users only]
Last 3 months – Can be used as a trend trade – We show you how many times this trading strategy succeeded over the past 3 months [Premium users only]
Last 1 year – Also can be used as a more solid trade– We show you how many times this trading strategy succeeded over the past year
(Take close attention to each one of them when starting a new trading position.)
Your broker gives you an advantage, use it!
(Example on how to use this app at any broker’s platform:)
Before submitting a new trade, you have the opportunity to limit your losses and optimize your profit by entering a stop-loss & take-profit strategy, as shown in this example:
In the image:
Red circle: Take Profit is set to 2.00%, meaning in case of a win we gain $210.00 on this trade. (This image was taken on eToro’s trading platform, but is available on any trading platform)
Arrows – Points to the point where you set your desired exit plan
Set Order – Start this position
Pro tip: You can start a virtual account for free at eToro to test the results you get using this app.
My name is Guy and I’m the founder of Traders-Paradise.
This project has been quite the ride in my life. Years and years of research and develop, motivated strictly by curiosity and a sense of achievement by solving hard mathematical problems in a chaos theory environment.
Our team includes several data scientist along with algorithmic programmers investigating the stock market for the past 6 years, driven by the idea of developing tools that will help people from all around the world make more money of trading.
Basically saying: We aim to bring more and more people from the 80% losing side to the 20% winners side.
That’s also a good place to thank all of the people who worked with us over the years (and still working), you’ve been amazing, each and every one of you! Thank you.