What are they and how can they help my trading?
Bias Alerts can help you better understand how a market may trade on a given day by notifying you of the historical performance statistics of market events and patterns that may impact the current session. When multiple biases favor a direction for a market, traders may benefit by trading more confidently in that direction, or more cautiously against it.
Bias example:
Most biases are based on an “end of day” exit. This means they are showing a “rest of session” bias from the entry of the setup until the close of the regular trading hours (1515 pm CT).
The example above is a long bias in the ES when the ES opens above the high of the prior session (regular trading hours) and the prior session True Range is less than the 5-Day Average True Range. The Bias assumes one entered long at the open (8:30 am CT) and exited at the close of the session (3:15 pm CT). Historically, this has happened 611 times, 56.4% of the time the ES closed above the open and the profit factor (ratio of gains / losses is 1.48.
The alert is highlighted in green when the criteria is met. If bias information is only showing green highlighting, like the example below, then the bias criteria is fully met and currently active. Prior to the criteria being met it will be highlighted in yellow. The color coding is intended to give you a heads-up of a potential bias being in play for the session. An example of something that may show up in yellow highlighting would be an opening filter that is awaiting the open of the market to know if it is met.
Feature reference:
- Name and direction of the bias
- Icon to view the description of the bias rules
- The instrument the bias is applicable to
- The setup the bias is applicable to. Setups include the open of the regular trading hours, opening ranges and time based entries.
- Trade Type refers to the entry method that is used in the bias. Entry methods include: Long, Short, High Breakout, High Fade, Low Fade, and Low Breakout. For more information about these entry methods click here.
- Stop refers to the stop loss used for the bias. If it says End of Day, then this bias is not using a stop and is exiting at the close of regular trading hours.
- Target refers to the take profit level used for the bias. If it says End of Day, then this bias is not using a target and is exiting at the close of regular trading hours.
- Opening filters shows where the instrument must open for the bias to be applicable for the day. Not every bias will have an opening filter, and this section may have other patterns or events listed here instead. Anything listed is a requirement of the bias.
- This section is listing any Indicator, Price Pattern, Profile Pattern, Calendar, or Market Event information that is included in the bias. Anything shown here is a requirement of the bias.
- Open Price is the opening price for the market the bias is applicable for. This is helpful for any Intraday Open setup as this will be the price the bias would be measured from.
- The image shown here is the equity curve of the bias. You can click on it to see a larger version.
- Trade count refers to the amount of samples included in the bias.
- Win percent is the percentage of trades that resulted in a hypothetical profit.The higher the number the better.
- Profit Factor is a helpful financial ratio that represents the historical hypothetical gains of the winning trades divided by the historical hypothetical losses of the losing trades. A ratio of 1.0 represents a breakeven strategy, anything greater than 1.0 has been profitable historically and the higher the number the better. Anything under 1.0 has lost money historically.
- This button allows you to see more details about the results.