What is an outlier?
But what does that have to do with trading? Nothing. But let us attach a specific word to it. The word shall be “EVENT”
So I have a trading buddy, aka fx outlier, out there in internet neverland somewhere that has been watching me. Each week, I post my trades and each week, he or she may comment on their observations. I was pondering on the name OUTLIER this week and the meaning to it.
So if outlier event means something beyond the norm or beyond the expected, then next week, I am doing an outlier event.
In trend following, we make money on trend trades. A trend trade is a trade that is trying to catch a trend as it moves and keeps on moving. We hope to capture hundreds of pips on these trades.
But what do trend followers do when the market is not trending? How to they make money? Do they sit on their hands? Do they sleep a lot? Do they read books?
Well next week I am going to try my hand at making money when a market is not trending as per my own definition of trending. I am going back to something that kind of made a lot of readers of this blog, in the past year, say, “What the crap are you even talking about?”
Next week, I am going to continue what I have been doing thus far which is trying to catch a trend. I will also be trying to make money ON A DEMO in my nadex account. I have been thinking a lot about it this week and so the time has come to give it another go.
I will try, to the best of my ability, to convey my ideas on this blog. This is my outlier event. Will it turn into something awesome? Who knows but we will see.
Thank You FX Outlier for following along for the ride. The rules of our conversation remain the same as far as the stoploss limits and such for the trend following. The nadex, next week, is in demo.