Apiary Fund Blog

High Probability Trade Qualities

[fa icon="calendar"] Apr 24, 2018 10:44:25 AM / by Shawn Lucas

Shawn Lucas

A frequently asked question is, “What is a high probability trade?”

When you sit down for a good trading session, finding a trade setup isn’t that hard-but there are trading setups, and then there are high probability trading setups.  In fact, in any given trading session you’ll only have a few setups with that coveted high probability quality that pays so handsomely!

probability-impact-risk-matrixSo what are those qualities in a setup that make it high probability?

We’ve identified qualities of a high probability trade: (In order of importance)

1.     Trend.  Does the trend support the direction of the trade?

2.     Momentum.  Is momentum building or slowing?

3.     Support and Resistance.  Is the trigger above or below support?

4.     Pattern.  Is there a pattern to support the trade?

5.     Volatility.  Is there enough volatility to create a profit?

6.     Time.  Are you at the beginning of a time cycle?

7.     Indicators.  Does your favorite indicator support the setup?

Like a good attorney, you can use the qualities listed above to build a solid case for a high probability trade.  If you don’t have everything aligned, then the probability of successful trade drops.  If your trading setup has these qualities in perfect alignment, then there’s a high probability the trade will work to your favor.

About Apiary Fund

Located in Orem, Utah, Apiary Fund is a crowd sourced fund management company that develops successful investors and gives them the opportunity to create flexible income by managing a small portfolio of company money. Through technology and education, Apiary empowers traders to work toward their path to success in the financial markets.

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Topics: Apiary Fund

Shawn Lucas

Written by Shawn Lucas

Shawn Lucas is the founder and fund manager at the Apiary Fund. He began his career as a broker where he worked the trading desk and processed trades for high net worth investors. An expert in the field of technical and economic analysis of the financial markets, Shawn has since established his reputation as a thought leader and speaker in the financial services industry. Shawn's simple and methodical approach to the markets has helped thousands of investors better understand and improve their performance and profitability in the financial markets.

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