Alert Trades: Seasonality

Trading is all about probabilities. However, there is no 100% probability in trading. As a result, trader’s try to find some type of “edge” in order to increase their probability of success. The “edge” normally is looking for past patterns to repeat themselves in the future.

“Seasonality” is one method that many traders are using today in order to find repeated patterns for instruments in global markets. Most seasonal statistics involving looking at the price percentage movement for a certain period for 10 or more of years. The reference point for the seasonal calculation is the beginning date. The longer the range for the seasonal calculation, the less “noise” so you get a more accurate value. The lower the range, more “noise” gets introduced giving you a less accurate value. The “noise” is caused by volatility. We have upgraded this issue now where the range is not as critical.

Our statistical calculations incorporate volatility which gives a more accurate view of historical patterns. This upgraded method is now available for all global instruments around the world.