Learning from History

The Spanish-American George Santayana is credited with the quote:  “Those who do not learn from history are doomed to repeat it."

In trading, we see history repeat itself. We see the same patterns being repeated over and over. One such patter is the Euro between about 6.30am and 7.30am New York time. Looking at a 3 tick range bar I see the same trade over and over. The trade can be both short, or its mirror image - long. The last 3 or 4 days you could almost put the trade on in advance and go get coffee and make money. It doesn't mean that it will happen every day but the fact that a pattern is there makes it easier to make money.

There are patterns like this all over the place. Noticing them can add hugely to my results at the end of each year. Ching! Ching!