The normalization process takes a standardized trade plan and conforms it into your daily work flow to create a TradeStrategy. This is done using our applications which provide the specific levels for Trade Execution and parameters for Trade Management.  Every market state has its own characteristics and structure that define it. Certain strategy themes that are inherent to a condition will have better alignment than others to a trader’s unique standardized TradePlan. By normalizing favorable market state conditions that compliment a TradePlan with the specific PriceMap levels that define the structure alignment, the optimal TradeStrategy can be achieved. The result is a unique MyTradeStrategy which offers a more consistent structured approach to trading that is applicable across all markets.

TradeStrategy Normalization Analysis

The Normalization process starts with conforming trade execution of a TradePlan into a strategy by using JSApplications to create guidelines for entry and exit.  A TradeStrategy is completed when trade management modules of position, risk and size management are normalized with this process.

Trade Execution

JSServices applications and analytics provide an objective resource to normalize a standardized TradePlan into a consistent TradeStrategy using specific PriceMap levels for trade execution.

• Entry Points
  • Directional Levels are the ideal Entry Points to normalize a TradeStrategy as they are the best risk defined levels on the PriceMap Framework. Directional Levels are the pillars of the market structure alignment which forecast change in the market state and are the optimal areas initiate a trade.

• Exit Points
  • Target Levels – PriceMap Target Levels are the ideal Exit Points to normalize a momentum or BREAKOUT TradeStrategy as they define the price segment moves the market is trading in offering a consistent approach to define risks with.
  • Directional Levels – are the ideal Exit Points to normalize a FADE or exhaustive REVERSAL TradeStrategy as they define the price framework of the market structure alignment, offering a consistent approach to identify risk associated with defined reward.

• Leverage Points
  • Validation Levels – Validation Levels normalize the process of adding leverage to an opportunity by identifying specific price points that when violated confirm the directional momentum of a trade, offering a uniform approach that can be applied across all markets.

Trade Management

JSServices applications and analytics provides a structured approach to normalize the position management of a TradeStrategy using the PriceMap Framework, MarketMetrics and PlayBook strategy themes.

• Position Management Tactics
  • PriceMap Framework– The PriceMap Framework provides a structured overlay that defines the price segment distance the market is trading in. This can be used to normalize the position management of a TradeStrategy to make it more consistent.

• Risk Management
  • MarketMetrics– The PriceMap Analytics provide MarketMetrics which define risk parameters that outline each level on the PriceMap Framework. The metrics provide a standard to identify risk levels that are used to normalize the risk management of a TradeStrategy which is unified across all markets.

• Size Management
  • PlayBook – The PlayBook provides a clear guide to the strategy themes that are inherent in the state condition. The themes define the best opportunities in the trade period and are classified into Optimal and Hedge Strategies. This offers a consistent value ranking to normalize the size management of a TradeStrategy.