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Os Badge

Open Strategy

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Why is Open Strategy (“Os” element) investable?

• “Os” is a what-if analysis on the relative performance of alternative entries

• What would have happened if trades had been opened earlier? (- 50% earlier than the actual trade, - 40%, etc.)

• What if trades had been opened later? (+10% than actual trade +20%, etc.)

• Os (Performance vs. alternative opening) is a valuable indicator, particularly in combination with Pf (strategy performance):

• Strategies with good Os and good performance are solid• Be careful with strategies with good Pf but a Os below magenta

level… this could be an indication of LUCK (or a close strategy so good that the trader can afford to not pay attention to openings; checking that strategy’s Cs is recommended!)

• Worsening Os is a good early indicator that a strategy is in trouble – so stay tuned for trends in Os, as well as overall level

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INDEX

1. UNDERSTANDING OS

2. IMPROVING ON OS

3. QUESTIONS?

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Understanding Os – Os Badge

Your Os level is displayed under Trader -> Challenge

• Color indicates achievement level in TS Elements

• Colors increase in difficulty from left to right• Yellow -> worst Os grade• Magenta -> best Os grade

• Indicates progression within Os• Across all colors• You can also check the percentile of

all traders

• Click on to see a detailed description of the level you are in

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Os – Diagnoses trade opening strategy

What if a strategy opened trades a bit earlier, or later?Would performance change?

Trade iTime

Trade duration (T)

+ 20%T Close time-20%TOpen time

P&L

Actual Trade P&L

Time

Return (+20%T) Return (-20%T)

+ 10%T -10%T

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How does Os work?

• Os runs a competition by your chosen entries against 10 virtual “Challengers”

• What would your return have been if you had opened every trade 10% , 20%, etc. earlier?

• Similarly, what if you’d opened your trade 50%, 40% etc. later?

• The Os Chart tracks the cumulative profit gap achieved by your strategy against each of the alternatives:

• If your open strategy comes out on top = you time your openings well!

• If your open strategy comes out at the bottom = time to review…

• The chart tracks both the rank and the gap – where the horizontal line tracks average results for traders with your same trade duration.

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Os – Understanding the Os Chart

Click to view all stratregies

Bad zone!

Good Zone!

Bad

Strategy better off than in case of opening trades earlier / later!

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Good Os – Cumulative lead through good openings

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Bad Os – Cumulative lag through bad openings

Strategy worse off than in case of opening trades earlier / later!

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INDEX

1. UNDERSTANDING Os

2. IMPROVING ON Os

3. QUESTIONS?

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Os – What’s the point?

Os can diagnose strategies as working, fading, and random (i.e. non strategies)NB: Os works for independent trading decisions – it doesn’t for trades hedging other trades

If a strategy works, actual Openings outperform alternative openings1

3 When strategies stop working, Os can anticipate performance breakdowns before they happen

If a strategy is on to a pattern, Os helps to maximize performance by fine-tuning entries

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Os when a STRATEGY works

High Os is powerful indication that a strategy worksWhen a system works, traders pick the best opening (because they can)

• If a strategy is on to a pattern• Good entries anticipate a

winning close over a target horizon

• Winning openings outperform most alternative openings over that horizon

• In this case, life is good!• Good entries• Low stress trades• Systematic profits

Haven’t watched “The Incredibles”? Do it now! http://www.imdb.com/title/tt0317705/

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Os decays once a STRATEGY stops working

Worsening Os is the first sign of trouble when patterns break downBecause NO strategy works for ever

• When you’re first to discover a pattern• It’s great - for a while• But if your pattern really is a

pattern, others WILL notice it

• Once others notice more liquidity crowds your strategy

• Closings are less obvious• Noisy signals appear• The choice of opening isn’t as

clear cut• Actual openings lag

alternative closings

• Time to move on? Your Os and your Cs badge will be of help!

Haven’t watched “The Incredibles”? Do it now! http://www.imdb.com/title/tt0317705/

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INDEX

1. UNDERSTANDING Os

2. IMPROVING ON Os

3. QUESTIONS?

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Questions?

Trading is hard – no wonder there are unanswered questions!(Why not, together, build a Knowledge Base that answers them all?)

• The Knowledge Base contains TS Mentors’ answers to all your questions!

• Mentors are Traders like you who enjoy helping out, and are voted very good at it, AND

• Trading educators hand-picked for quality and broker independence, who pitch their materials

• Want to contribute? Great!• Post an article / Post• Ask or answer questions• Rate fellow traders’

contributions

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Can you do better?

• This article is a “stub” (an unfinished entry that MUST be improved)• We need your questions & feedback to improve it!• Feel free to post your questions to the TS Knowledge Base

• Have suggestions?• theowl@tradeslide.com can’t wait to hear them• We’d love to credit you for improving our content

• Contributing to this section will boost your mentor score if others like what you post – helping out will reflect on your community standing, which means

• More traders will visit the URL on your profile• When they visit, they’ll request your mentoring!