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Episode 20

Watching habits appear

A single day can be misleading. Even a week. You can have an excellent day while executing poorly. Or a bad day while following your plan perfectly.

That's why, at a certain point, I started looking less at isolated days and more at what came back over time.

Habits only appear once you accumulate enough data

Do my best results come in the morning? Do I trade too much after a certain hour? Does a particular setup behave differently depending on the session? Do my losses increase after a streak of trades? Do I hold my winners for less time on certain days?

A single transaction doesn't answer these questions. A hundred transactions start to.

That's where statistics become interesting

Not because they give a magic answer. But because they make certain things visible. A trend can appear. A repetition. A difference between two periods. A streak. A change in behavior.

And sometimes, something the trader believed to be true simply isn't when you look at the data.

But I really did not want to turn a correlation into advice

This is important. Seeing that a behavior appears often does not mean the software should say: "do this" or "stop trading that." That would go beyond the role of the journal.

LowFlow can show: over this period, here is what happened. Here are the results. Here are the hours. Here are the setups. Here are the streaks. Then the trader interprets.

The data can also show an evolution

That might be even more interesting. When you look at several months, you can see that something changes. Fewer trades. More patience. Better consistency. Or, on the contrary, a bad habit gradually coming back.

The journal then becomes a kind of mirror over time. Not a judge.

That's exactly the role I wanted to give LowFlow

I don't want to build a system that claims to know how someone should trade. I want to build a system that lets them clearly see what they actually do.

Because a decision always stays human. The role of the software is simply to provide a better view. Make decisions visible, not make them.

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Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones' financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

CFTC Rule 4.41 - Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.