THE 8 PILLARS OF STATISTICAL EDGE TRADING: The Full Philosophy Behind the Historic Sample EA v7.1 (MT5)
🏛️ The place Information Turns into Future 🏛️
INTRODUCTION
“In buying and selling, the previous would not predict the longer term. However patterns embedded in time reveal the rhythm of markets ready to repeat.”
Pricey Reader,
Welcome to a journey via time, knowledge, and the knowledge of markets. This e-book will introduce you to the Eight Pillars of Statistical Edge Buying and selling—a complete framework that transforms historic knowledge into actionable buying and selling intelligence.
On the coronary heart of this method stands HISTORICAL DATA, the principle protagonist of our story. Not like fleeting indicators or lagging alerts, historic patterns reveal the seasonal heartbeat of economic markets—patterns which have repeated for many years, influenced by the unchanging cycles of human commerce, institutional habits, and financial necessity.
Consider it this fashion:
When is harvest season? Each farmer on the planet is aware of—it follows the solar. Why? As a result of nature follows patterns. The solar’s place, rainfall, and temperature create predictable cycles. Farmers do not guess when to plant—they KNOW.
Monetary markets work the identical means.
When do corporations report earnings? When do governments launch fiscal budgets? When do establishments rebalance portfolios? When do retail merchants obtain bonuses and make investments? These occasions create seasonal patterns in worth actions. That is the TRUE Provide and Demand Seasonality—not simply assist and resistance ranges on a chart, however the basic rhythm of cash flowing via world markets.
📊 PILLAR 1: HISTORICAL PATTERN (HIST) – “The Primary Character of Our Story”
Default Weight: 30%
CHAPTER 1: THE MEMORY OF MARKETS
THE PHILOSOPHY
Historic Sample Evaluation is the cornerstone of the 8-Pillar system. It solutions one basic query:
“In Week 15 of the previous 30 years, how usually did EURUSD go UP vs DOWN?”
If the reply is “23 occasions UP, 7 occasions DOWN”—that is a 77% historic bullish edge. This is not prediction. That is statement of repeating cycles.
THE REAL SUPPLY AND DEMAND
Let’s use a common agricultural analogy to grasp true seasonal provide and demand:
PEAK HARVEST SEASON (e.g., Wheat or Corn):
Provide: HIGH (harvest reaches its peak, markets are flooded)
Demand: STABLE (world consumption stays regular)
Value: LOW (abundance naturally drives costs down)
OFF-SEASON / WINTER:
Provide: LOW (no lively harvest, counting on saved reserves)
Demand: STEADY/HIGH (colder months usually improve power/meals demand)
Value: HIGH (shortage and storage prices drive costs up)
Monetary markets have equivalent patterns:
USD IN MARCH (Tax Season):
Provide: LOW (People want USD to pay taxes)
Demand: HIGH (repatriation of funds, promoting international belongings)
USD Energy: HIGH (Greenback rallies in Q1)
USD IN DECEMBER (12 months-Finish):
Provide: HIGH (firms paying dividends, bonuses)
Demand: LOW (lowered buying and selling, holidays)
USD Habits: MIXED (unstable, then quiet)
USD IN OCTOBER (Fiscal 12 months Finish):
Provide: VARIABLE (will depend on portfolio rebalancing)
Demand: HIGH (institutional shopping for for brand spanking new fiscal yr)
USD Sample: Typically bullish into November
WHO USES THIS STRATEGY?
🏦 PENSION FUNDS & ASSET MANAGERS
These giants handle trillions of {dollars} and MUST rebalance at particular occasions:
Month-end: Rebalance portfolios to take care of goal allocations
Quarter-end: Report back to regulators, alter foreign money hedges
12 months-end: Finalize positions for annual stories
Instance: CalPERS (California Public Staff’ Retirement System) manages $440 billion. Once they rebalance in December, they transfer markets. Their patterns are predictable.
🌾 AGRICULTURAL & COMMODITY TRADERS
The unique seasonal merchants. They’ve understood provide/demand cycles for hundreds of years:
Planting season: Farmers purchase seeds, fertilizer (commodity demand UP)
Harvest season: Farmers promote crops (commodity provide UP)
Forex influence: AUD/NZD strengthen throughout harvest (exports improve)
Instance: Australian wheat harvest in November-December strengthens AUD. This sample has repeated for many years as a result of agriculture IS seasonal.
🏛️ CENTRAL BANKS & SOVEREIGN FUNDS
Authorities establishments function on fiscal calendars:
Japan: March fiscal year-end (JPY flows)
USA: October fiscal year-end (USD flows)
UK: April fiscal year-end (GBP flows)
Instance: Japanese corporations repatriate earnings in March, creating JPY demand. The USD/JPY sample in March has been bearish for many years.
💼 CORPORATE TREASURERS
Multinational corporations should handle foreign money publicity:
Quarterly earnings: Convert international income to house foreign money
Dividend funds: Want USD to pay shareholders
CapEx cycles: Purchase tools at particular occasions of yr
Instance: Apple pays dividends in February, Might, August, November. Earlier than every fee, they promote foreign currency echange for USD.
HOW THE SYSTEM ENHANCES HISTORICAL DATA
The Historic Sample EA would not simply rely bullish/bearish years. It applies three refined enhancements:
1. Z-SCORE FILTERING (Statistical Significance)
Not all 70% patterns are equal. A 70% with 30 samples is extra dependable than 70% with 5 samples. Z-Rating measures statistical significance.
Components: Z = (noticed% – 50%) / √(0.25/n)
Z ≥ 1.65: 90% confidence (good)
Z ≥ 1.96: 95% confidence (sturdy)
Z ≥ 2.58: 99% confidence (glorious)
2. RECENCY WEIGHTING (Time Decay)
Markets evolve. A sample from 2024 is extra related than one from 1994. Latest years get increased weights within the calculation.
Weight = RecencyDecay ^ (CurrentYear – DataYear)
3. CONDITIONAL SEASONALITY (Sequence-Primarily based)
If Week 14 was bullish, what is the likelihood Week 15 will even be bullish? This provides context—patterns usually are available sequences.
THE MATHEMATICS
Let’s calculate an actual instance:
EURUSD Week 15 Evaluation (2025)
Uncooked Information (previous 30 years): Bullish years: 21, Bearish years: 9, Uncooked Edge: 70% bullish
Z-Rating Calculation: Z = (0.70 – 0.50) / √(0.25/30) = 2.19 (95%+ confidence – VALID ✓)
Recency Weighting (0.85 decay): Latest 10 years: 16 bullish, 4 bearish (80%); Older 20 years: 5 bullish, 5 bearish (50%); Weighted Edge: 72% bullish
Conditional Examine (Week 14 was bullish): Historic sample: Week 14 bullish → Week 15 bullish (75% of time); Increase utilized: 72% × 1.20 = 86.4%; Remaining HIST Rating: 86.4%
SEASONAL PATTERNS BY CURRENCY
USD (US Greenback): ✓ Robust: January (year-start flows), March-April (tax season); ✗ Weak: August (summer season doldrums), December (year-end promoting)
EUR (Euro): ✓ Robust: Might-June (vacationer season, export energy); ✗ Weak: November-December (manufacturing slowdown)
JPY (Japanese Yen): ✓ Robust: March (fiscal year-end repatriation); ✗ Weak: July-August (Obon vacation, capital outflows)
GBP (British Pound): ✓ Robust: April (UK fiscal year-end), October (price range anticipation); ✗ Weak: June-July (summer season holidays)
AUD (Australian Greenback): ✓ Robust: November-February (commodity harvest, commerce surplus); ✗ Weak: June-July (Australian winter, decrease exports)
CAD (Canadian Greenback): ✓ Robust: When oil costs rise (winter heating season); ✗ Weak: April-Might (post-winter demand drop)
CHF (Swiss Franc): ✓ Robust: Throughout crises (safe-haven flows); ✗ Weak: Threat-on intervals (cash leaves Switzerland)
THE WEIGHT: WHY 30%?
Historic Sample receives the very best weight (30%) as a result of:
FOUNDATION: It is the bottom upon which all different pillars are validated
OBJECTIVITY: Pure knowledge, no interpretation wanted
DEPTH: 20-30+ years of knowledge offers statistical robustness
REPEATABILITY: Seasonal patterns are structural, not random
📈 PILLAR 2: WIN RATE (WIN) – “The Validator of Historic Edge”
Default Weight: 20%
CHAPTER 2: TESTING THE PAST
THE PHILOSOPHY
Historic patterns inform us what HAPPENED. Win Fee tells us what works when TRADED.
The Win Fee pillar simulates precise trades on historic knowledge to measure:
“If we traded this sample with the SAME guidelines each time, how usually would we have now PROFITED?”
THE BACKTEST METHODOLOGY
The system performs a rolling backtest during the last 26 candles (configurable):
For every of the previous 26 weeks:
Entry: Open worth of the week
Route: Similar as historic sign (BUY or SELL)
Exit: Shut worth of the week
End result: WIN if closed in revenue, LOSS if closed in loss
Win Fee = Wins / Complete Trades × 100%
REAL-WORLD EXAMPLE
GBPJPY Backtest Outcomes
Historic Sign: SELL (based mostly on 25 years of knowledge)
Backtest Interval: Final 26 weeks
Outcomes: Wins: 18, Losses: 8, Win Fee: 69.2%
Interpretation: The historic SELL sign has been working not too long ago.
Confidence: HIGH (above 65% threshold)
WHY WIN RATE MATTERS
A sample may be traditionally correct however at present damaged:
SCENARIO A: Robust Sample, Latest Efficiency
Historic Edge: 75% bullish (30 years)
Latest Win Fee: 70% (26 weeks)
VERDICT: ✓ VALID – Sample nonetheless works
SCENARIO B: Robust Sample, Poor Latest Efficiency
Historic Edge: 75% bullish (30 years)
Latest Win Fee: 40% (26 weeks)
VERDICT: ✗ INVALID – Sample could also be breaking down
SCENARIO C: Weak Sample, Robust Latest Efficiency
Historic Edge: 55% bullish (30 years)
Latest Win Fee: 80% (26 weeks)
VERDICT: ⚠️ CAUTION – Latest energy could also be non permanent
THE CONDITIONAL CONFLUENCE FILTER
When enabled, the system requires BOTH pillars to agree:
EnableConditionalConfluence = true
HIST says BUY + WIN says BUY → VALID TRADE ✓
HIST says BUY + WIN says SELL → NO TRADE ✗
HIST says SELL + WIN says SELL → VALID TRADE ✓
HIST says SELL + WIN says BUY → NO TRADE ✗
WHY 20% WEIGHT?
Win Fee will get 20% as a result of:
VALIDATION: It confirms the historic sample remains to be working
RECENCY: It focuses on current market habits
PRACTICAL: It simulates precise buying and selling outcomes
COMPLEMENTARY: It really works hand-in-hand with HIST
🏛️ PILLAR 3: COT DATA (COT) – “The Voice of the Sensible Cash”
Default Weight: 20%
CHAPTER 3: FOLLOWING THE GIANTS
THE PHILOSOPHY
The Dedication of Merchants (COT) report is printed each Friday by the CFTC (Commodity Futures Buying and selling Fee). It reveals the positions of:
COMMERCIAL HEDGERS: Corporations that use currencies for enterprise
NON-COMMERCIAL SPECULATORS: Giant establishments and hedge funds
SMALL SPECULATORS: Retail merchants (like us)
We deal with NON-COMMERCIAL positions as a result of these are the “good cash”—hedge funds and establishments with analysis groups, inside info, and billions to deploy.
THE COT LOGIC
LONG POSITIONS: Speculators betting the foreign money will RISE
SHORT POSITIONS: Speculators betting the foreign money will FALL
NET POSITION: LONG – SHORT
WEEKLY CHANGE: This week’s NET vs Final week’s NET
Interpretation:
Internet Place POSITIVE + Growing = BULLISH
Internet Place POSITIVE + Reducing = Bullish however fading
Internet Place NEGATIVE + Reducing additional = BEARISH
Internet Place NEGATIVE + Growing = Bearish however recovering
REAL COT DATA EXAMPLE
COT Report – January 7, 2025
EUR (Euro FX Futures): NET Place: +45,230 contracts (Speculators are NET LONG); Weekly Change: +8,500 contracts (Speculators ADDING LONGS); Bias: BULLISH
JPY (Japanese Yen Futures): NET Place: -72,800 contracts (Speculators are NET SHORT); Weekly Change: -5,200 contracts (Speculators ADDING SHORTS); Bias: BEARISH (Bullish for USDJPY)
HOW COT ALIGNS WITH PAIRS
For a foreign money PAIR, we analyze BOTH currencies:
EURUSD Evaluation:
EUR COT: NET LONG +45,230, ADDING LONGS (+8,500)
USD COT: NET LONG +12,000, REDUCING LONGS (-3,000)
Calculation:
EUR Bias: BULLISH (including longs)
USD Bias: BEARISH (lowering longs)
EURUSD Sign: BUY (EUR sturdy, USD weak)
If Historic Sign was additionally BUY → COT ALIGNED (✓)
If Historic Sign was SELL → COT AGAINST (✗)
THE TWO COT MODES
MODE 1: WEEKLY CHANGE (Beneficial for Weekly Technique): Focuses on the CHANGE from final week to this week; Higher for timing as a result of it reveals momentum shifts
MODE 2: NET POSITION (General Stance): Focuses on the whole NET place; Higher for long-term developments however much less exact for timing
WHY 20% WEIGHT?
COT Information will get 20% as a result of:
INSTITUTIONAL: It reveals what massive cash is doing
FORWARD-LOOKING: Modifications in positions precede worth strikes
WEEKLY RELEASE: Matches the weekly buying and selling technique completely
PROVEN: COT has been a number one indicator for many years
🔥 PILLAR 4: CONSECUTIVE STREAK (STRK) – “The Persistence of Patterns”
Default Weight: 20%
CHAPTER 4: THE POWER OF STREAKS
THE PHILOSOPHY
A streak represents CONSECUTIVE years the place the sample held. That is highly effective:
Week 15 EURUSD Evaluation:
WHY STREAKS MATTER
A 5-year streak tells us one thing necessary:
CONSISTENCY: The sample is not random—it is structural
MOMENTUM: Latest historical past strongly favors one course
EXPECTATION: Market members keep in mind and anticipate
BREAKING: When streaks break, strikes might be dramatic
STREAK SCORING
0-1 years: Impartial (no streak)
2-3 years: Average (sample forming)
4-5 years: Robust (sample established)
6+ years: Very Robust (deeply embedded sample)
REAL EXAMPLE
USDJPY Week 12 (March):
Streak: 7 consecutive BEARISH years (2018-2024)
Cause: Japanese fiscal year-end repatriation
This is not random. Japanese corporations MUST repatriate earnings in March. It occurs yearly.
Confidence: EXTREMELY HIGH
WHY 20% WEIGHT?
Streak will get 20% as a result of:
RECENCY FOCUS: Latest consecutive patterns are extremely predictive
STRUCTURAL: Lengthy streaks recommend basic causes
SIMPLE: Simple to grasp and confirm
COMPLEMENTARY: Works nicely with historic proportion
💵 PILLAR 5: YIELD DIFFERENTIAL (YLD) – “The Curiosity Fee Edge”
Default Weight: 15%
CHAPTER 5: CARRY TRADE LOGIC
THE PHILOSOPHY
Cash flows to the place it earns the very best return. That is the muse of the CARRY TRADE—one of many oldest and most worthwhile methods in foreign exchange.
Instance:
If US 10Y Yield: 4.5%
And JP 10Y Yield: 0.5%
Buyers borrow in JPY (low cost) and spend money on USD (excessive return). This creates DEMAND for USD and SUPPLY of JPY.
End result: USDJPY rises
YIELD DIFFERENTIAL CALCULATION
EURUSD Yield Evaluation:
EUR (Germany 10Y): 2.3%
USD (US 10Y): 4.5%
Differential: EUR – USD = 2.3% – 4.5% = -2.2%
Interpretation: USD has increased yield → USD is extra engaging
Bias: BEARISH for EURUSD (cash flows to USD)
YIELD ALIGNMENT
If Historic Sign = SELL and Yield Differential is NEGATIVE: → ALIGNED (each say SELL EURUSD)
If Historic Sign = BUY and Yield Differential is NEGATIVE: → MISALIGNED (battle between sample and fundamentals)
WHY 15% WEIGHT?
Yield will get 15% as a result of:
FUNDAMENTAL: Rates of interest are the first driver of FX
SLOW-MOVING: Charges do not change usually, so alignment is steady
INSTITUTIONAL: Central banks and funds MUST contemplate yields
SUPPORTING: It confirms or questions the historic sign
🎭 PILLAR 6: RETAIL SENTIMENT (SENT) – “Buying and selling In opposition to the Crowd”
Default Weight: 15%
CHAPTER 6: THE CONTRARIAN EDGE
THE PHILOSOPHY
Retail merchants are constantly fallacious. This is not an insult—it is statistical truth.
Why? As a result of retail merchants:
Chase developments after they’re exhausted
Panic promote at bottoms
Common losers as an alternative of chopping them
Overtrade throughout volatility
Sensible merchants use this as a CONTRARIAN indicator:
SENTIMENT DATA SOURCES
IG Shopper Sentiment: 150,000+ retail merchants
OANDA Order E book: Pending orders and positions
Myfxbook Group Outlook: Mixture positions
DailyFX SSI: IG’s Speculative Sentiment Index
REAL EXAMPLE
GBPUSD Retail Sentiment:
Lengthy: 72%
Brief: 28%
Interpretation: Retail is extraordinarily bullish
Contrarian Sign: SELL GBPUSD
If Historic Sign was SELL → ALIGNED ✓
If Historic Sign was BUY → CONFLICT ✗
EXTREME READINGS
Under 30% or Above 70%: Robust contrarian sign
Between 40-60%: Impartial, no clear contrarian edge
The extra excessive, the higher the contrarian sign.
WHY 15% WEIGHT?
Sentiment will get 15% as a result of:
CONTRARIAN: Confirmed edge towards the group
REAL-TIME: Up to date day by day and even hourly
PSYCHOLOGICAL: Captures concern and greed
CONFIRMING: Works finest when aligned with different pillars
📰 PILLAR 7: ECONOMIC NEWS (NEWS) – “Anticipating the Catalysts”
Default Weight: 15%
CHAPTER 7: NEWS AS CONFIRMATION
THE PHILOSOPHY
Financial information occasions are the CATALYSTS that set off worth actions. However we do not commerce the information itself—we use historic bias to grasp how information TYPICALLY strikes the foreign money.
Instance: US Non-Farm Payrolls (NFP)
Historic Information: In 56% of circumstances, when NFP beats expectations, USD rallies for the week.
If NFP is scheduled this week AND historical past favors USD energy, AND our Historic Sample says USD energy…
→ TRIPLE CONFLUENCE
EVENT BIAS DATA
The system tracks historic bias for main occasions:
Occasion: US CPI (Shopper Value Index)
Beats Forecast: 58% of the time
When it beats: USD +0.5% common
When it misses: USD -0.3% common
Historic Bias: BULLISH for USD
Occasion: ECB Curiosity Fee Determination
Hawkish shock: 42% of the time
When hawkish: EUR +0.8% common
When dovish: EUR -0.6% common
Historic Bias: MIXED
NEWS SCANNER FEATURES
Excessive Impression Occasions: Recognized with 🔥
Medium Impression Occasions: Recognized with ⚡
Beat Proportion: How usually the foreign money “beats” expectations
Forex Outlook: Mixed information + historic evaluation
WHY 15% WEIGHT?
Information will get 15% as a result of:
CATALYSTS: Information occasions set off the sample to unfold
TIMING: Helps determine WHEN the transfer will occur
BIAS: Historic occasion bias provides one other layer of edge
AVOIDANCE: Additionally helps keep away from buying and selling throughout uncertainty
🔬 PILLAR 8: ADVANCED SEASONALITY (ADV) – “The Statistical Refinement”
Default Weight: 10%
CHAPTER 8: THE FINISHING TOUCHES
THE PHILOSOPHY
Superior Seasonality combines three statistical enhancements into one pillar:
Z-SCORE: Statistical significance measurement
RECENCY WEIGHTING: Latest years weighted extra closely
CONDITIONAL PATTERNS: Sequence-based likelihood
THE THREE ENHANCEMENTS
ENHANCEMENT 1: Z-SCORE FILTER
Solutions: “Is that this sample statistically important?”
Z ≥ 1.65 = 90% confidence
Z ≥ 1.96 = 95% confidence
Z ≥ 2.58 = 99% confidence
Patterns under threshold are filtered out.
ENHANCEMENT 2: RECENCY WEIGHTING
Solutions: “Are current years extra necessary?”
ENHANCEMENT 3: CONDITIONAL PATTERNS
Solutions: “What occurred BEFORE impacts what occurs NEXT?”
If Week 14 was Bullish → Week 15 Bullish likelihood = 75%
If Week 14 was Bearish → Week 15 Bullish likelihood = 45%
Sequence provides context to standalone possibilities.
WHY 10% WEIGHT?
Superior Seasonality will get 10% as a result of:
REFINEMENT: It enhances HIST, not replaces it
OPTIONAL: May be turned off for less complicated evaluation
COMPLEX: Tougher to confirm and perceive
COMPLEMENTARY: Works finest alongside the opposite pillars
⚖️ PUTTING IT ALL TOGETHER – “The Confluence System”
THE PYRAMID OF CONFIRMATION
THE CONFLUENCE CALCULATION
🏛️ HIST (30%)
│
┌─────────────┼─────────────┐
│ │ │
📈 WIN (20%) 🏛️ COT (20%) 🔥 STRK (20%)
│ │ │
┌─────┴─────┬───────┴───────┬─────┴─────┐
│ │ │ │
💵 YLD (15%) 🎭 SENT (15%) 📰 NEWS (15%) 🔬 ADV (10%)
CONFLUENCE FORMULA:
Complete Rating = Σ (Pillar Weight × Alignment)
The place Alignment =
+1 if pillar agrees with sign course
-1 if pillar disagrees with sign course
0 if pillar is impartial
Most Rating: 100 (all pillars aligned)
Robust Sign: ≥ 55 factors
Average Sign: ≥ 40 factors
REAL CONFLUENCE EXAMPLE
EURUSD Week 15 Confluence Evaluation:
Sign Route: BUY (from HIST)
┌───────────┬──────────┬───────────┬─────────┐
│ PILLAR │ WEIGHT │ ALIGNMENT │ SCORE │
├───────────┼──────────┼───────────┼─────────┤
│ HIST │ 30% │ +1 (BUY) │ +30 │
│ WIN │ 20% │ +1 (67%) │ +20 │
│ COT │ 20% │ +1 (EUR↑) │ +20 │
│ STRK │ 20% │ +1 (5yr) │ +20 │
│ YLD │ 15% │ -1 (USD↑) │ -15 │
│ SENT │ 15% │ +1 (72percentL) │ +15 │
│ NEWS │ 15% │ +1 (CPI↑) │ +15 │
│ ADV │ 10% │ +1 (Z=2.1) │ +10 │
├───────────┼──────────┼───────────┼─────────┤
│ TOTAL │ 145% │ 7/8 │ +115 │
│ NORMALIZED │ 100% │ │ 79.3 │
└───────────┴──────────┴───────────┴─────────┘
Remaining Rating: 79.3 factors
Sign: STRONG BUY ✓
Motion: OPEN NOW (Sniper entry circumstances met)
🎯 TRADING RECOMMENDATIONS – “From Principle to Apply”
THE 2-3 PILLAR APPROACH (Beneficial for Newcomers)
In the event you’re simply beginning, deal with HIST + one or two supporting pillars:
COMBO 1: HIST + COT (Beneficial)
Use when: You need institutional affirmation
How: Commerce solely when HIST and COT agree
Win Fee: ~65-70% traditionally
COMBO 2: HIST + STRK (Momentum Focus)
Use when: You need current sample affirmation
How: Commerce solely when streak ≥ 3 years
Win Fee: ~70-75% when streak exists
COMBO 3: HIST + SENT (Contrarian Edge)
Use when: You wish to fade the retail crowd
How: Commerce solely when retail is excessive (>70% one facet)
Win Fee: ~68-72% at extremes
WEEKLY TRADING SCHEDULE
SUNDAY NIGHT (After COT Launch):
✓ Replace COT knowledge
✓ Examine Information Scanner for the week
✓ Determine prime 5 confluence alerts
MONDAY OPEN:
✓ Overview alerts from Sunday evaluation
✓ Examine if entry circumstances nonetheless legitimate
✓ Enter trades at market open
✓ Set SL = Final yr’s weekly vary
✓ Set TP = SL × Threat:Reward ratio
DURING THE WEEK:
✓ Monitor positions (no want to observe continually)
✓ Path stops if utilizing trailing cease characteristic
✓ Let trades run towards TP
FRIDAY CLOSE:
✓ Shut any remaining positions
✓ Calculate weekly P&L
✓ Put together for subsequent week’s evaluation
MONEY MANAGEMENT
Complete Threat per Week: 2% of account
If 4 alerts qualify: Threat per commerce: 2% ÷ 4 = 0.5%
If 8 alerts qualify: Threat per commerce: 2% ÷ 8 = 0.25%
This protects towards a number of losses.
STOP LOSS METHODOLOGY
The system makes use of HISTORICAL RANGE for cease loss:
What was the Excessive-Low vary of this week LAST YEAR?
Instance:
EURUSD Week 15 (2024): Excessive = 1.0850, Low = 1.0720
Vary = 130 pips
SL for 2025: 130 pips (identical anticipated volatility)
TP: SL × RR ratio (e.g., 130 × 1.5 = 195 pips)
📚 FINAL THOUGHTS – “The Knowledge of Historical past”
The 8 Pillars system is not about predicting the longer term. It is about understanding the RHYTHM of markets that repeat as a result of human habits and institutional necessities are cyclical.
Simply as farmers know when to plant and harvest, merchants can know when currencies are inclined to strengthen or weaken—not from guessing, however from observing many years of knowledge.
The harvest would not occur randomly. It occurs as a result of the solar, rain, and temperature create optimum circumstances. Monetary markets have their very own “seasons”—pushed by fiscal years, company earnings, central financial institution schedules, and human psychology.
By combining:
🏛️ HISTORICAL PATTERNS (the what)
📈 WIN RATE (the proof)
🏛️ COT DATA (the good cash)
🔥 STREAKS (the momentum)
💵 YIELDS (the elemental)
🎭 SENTIMENT (the contrarian)
📰 NEWS (the catalyst)
🔬 ADVANCED STATS (the refinement)
…you create a framework the place luck is minimized and edge is maximized.
THE 8 PILLARS OF STATISTICAL EDGE
“Information. Self-discipline. Future.”
by sanoy, 2026
[END OF BOOK]
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