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Horse racing, very much similar to trading. This is an interesting topic, and one that I started to look into when I was part of a group of people who discussed trading, music, BBQ and other topics on the way to mutual benefit and self improvement. The fact that I no longer read or am part of that group does not detract from the benefit of those ideas, indeed they continue to provide a strong rudder in heavy seas. ***

My method is based on the interaction between different asset classes, and on what happens when one of the assets moves "too fast" compared to an average. The move is quantified and a number is produced that allows one to hypothesise a market behaviour within a certain time frame. So:

1) Stocks & Bonds move
2) An average is calculated
3) A band within which Stocks should trade given the bond's behaviour is calculated.
4) When Stocks trade +/- those bands then a trade can be put on. There is a time stop, a stop loss and a profit target based stop to manage the trade.

***I have gone off my infatuation with that group, mainly because I got the distinct impression that it was beginning to function like a cult of sorts (a benign one though) and i felt that voicing an opposing idea to the founder (Chair, may he live long...) would have been inappropriate. That was confirmed by a conversation with an East Coast based trader who worked for the group's founder, and who did indeed harbour the same impression as myself, but who thought that it would not have helped him to voice his opinion. Self censorship did not seem an intelligent way of conducting one's professional or personal life, so I let it go.