The opinions expressed in these forums do not represent those of C2, and any discussion of profit/loss is not indicative of future performance or success. There is a substantial risk of loss in trading. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You should read, understand, and consider the Risk Disclosure Statement that is provided by your broker before you consider trading. Most people who trade lose money.

All things trading

In trading.
You ain’t always gotta be right.

You just need be leveraged well enough to wait until you become right.

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You always hear traders speaking of “noise”.
What is noise?
They reply " that twenty, thirty ticks… that’s just noise"
This is what true noise is.

The self talk you start having when the dollar amount on a losing trade starts looking back at you.
And you start asking questions and trying to find technical or fundamental reasoning.

“Is this really an uptrend or a bull trap”
“Should I bring up my stop a little”

To eliminate most of the noise. Lower your leverage.
Then that conversation may start only after you’ve given the markets room to breathe and stretch its wings.

Markets handle the movement. We traders only need to find a good seat for the show.

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I think you’re referring to noise without mentioning the other part the signal.
The signal is the pattern in the market that a strategy may use (manual or automated) as a basis for making a trade. Doesn’t mean the signal is 100% probability, just that it may mark a point where entering a trade may be more advantageous. The noise is the data that doesn’t represent such a signal.
As a rule, minute timeframe aren’t useful to retail traders(due to latency and accuracy of the data) but to sophisticated algos can be utilitzed.
System testing and more specifically Monte Carlo testing gives the trader a better approximation of what % of account may be experienced in a drawdown and an approximation of the risk of ruin of money management formulas used in a trading system. An automated trading system doesn’t know those emotional reactions and changing parameters such as stop losses are made based on logic. Market regimes can be programmatically used in automated trading. (i.e. IF X is occurring then we are in a uptrend) Loses are part of trading and should be expected and quantified.

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Well stated. I’m just an ol country boy raised in east Texas. But I think you’re saying you are measuring or at least monitoring the noise before trade entry right? Before a setup is validated.
And the noise is considered or defined as part of the signal to enter a trade.

The signal is embedded in the noise, the noise is filtered to detect the signal. The signal likely isn’t as obvious as the diagram but it represents the principle.
Signal to Noise

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I do not like noise nor do I like trying to “time” the market. Prudent investing is a well allocated and diversified portfolio. Multiple asset classes with different markets that have low correlations. It’s about understanding the market well enough to spread your investments, and understanding your goals well enough to balance your goals against diversification. When creating a portfolio for which aims to reduce unsystematic AND systematic risks via diversification, alternative investments need to be considered. Keep in mind that not all alternative investments are created equally, and that each alternative provides unique benefits to a portfolio. It’s important to look at all factors including what risk(s) you are trying to protect against, as well as how correlations fluctuate during different market cycles.

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The market moves faster than the eye can see.
You wanna slow the market down?

Lower your leverage.

Trading is psychological.
Losing money has a way of challenging the psyche.

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Most of the time us traders, we focus on what to be doing in a winning trade.
Adjusting sl’s, pulling a contract of profit down, and smiling watching the profit ticker.

But it is the things we should be doing in a losing trade that deserves most of the focus.

Winning will take care of itself.
It’s a big boy. Less controllable.

Losing, we can control lot easier.

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