About

This scientific approach to trading was developed because I saw the needs and pains of traders years ago.

The needs and pains that I recognized by studying numerous published traders were:

The trader needed the ability to explain why a trader made money. Was it intuition, luck, skill, a pattern-based strategy, reversion to the mean, trend following, risk management, or possibly any combination or all of the above?

The trader needed the ability to define patterns mathematically.

The trader needed the ability to calculate risk and base that risk on the probability of a successful trade.

Two questions that I needed to find the answers to:

Does trend-following give a trader an EDGE?
Do Fast Moves come from False Moves?

During a brief career as a trader, Todd Hudson discovered that the analysis techniques used my most traders were inherently flawed. Oftentimes, the analysis resulted in guesswork. This often led to more questions than answers. After studying numerous methodologies and technical indicators, Todd decided to create a more scientific approach. This scientific approach would be based on risk management and historical patterns. This would allow traders to place trades using historical analysis of these patterns to determine future probable outcomes. The initial goal was to get a sense of the daily direction for intra-day trading.