‘- Or without it in 10.

Trade-Ideas is on the road again today performing a dog and pony show on The Odds Maker for one of our large customers and their trading desk. The goal for the visit is to do some personal demonstrations and hand-holding on how to trade using The Odds Maker.

Great. But what happens 24 hours after we leave? To help those who attend our meetings retain the knowledge and spread the wisdom to others, we developed a short set of guidelines called,

Step by Step Trading with The Odds Maker

Wait!
Even if you don’t have The Odds Maker these rules still serve as a reminder what data points to know as you enter a trade. Instead of The Odds Maker calculating a strategy’s average winner/loser, a trader defines his/her own risk threshold from experience, self-defined rules, or gut instinct (and Trade-Ideas’ free stock research reports don’t hurt). The Odds Maker simply plays the role of your very own trading analyst – or bookie.

This week we’ll post the contents of this leave-behind. Today we share the overview:

Executive Summary

1. Find the best strategy using Trade-Ideas’ alert and filter combinations and determine the best way to trade it with The Odds Maker’s trade management results summary.
2. Get ready for a trade: confirm which direction the success trade will be and enter only on the strategy’s first alert for a particular stock.
3. Take a position by segmenting it to manage risk – never all in and always know the value of your strategy’s Average Loser.
4. Hold a position by looking for pullbacks to enter into the rest of the position and add the value of each stock’s Volume Weighted Volatility to the strategy’s Average Loser.
5. Exit a position by following the time-based constraints or if a profit target/loss target is reached

The full manual’s prose defines these terms in more detail.

Tomorrow: 1.0 The Odds Maker Set Up