Quote Originally Posted by jagin View Post
Thanks Pascal. Now that's clear to me.

What about: "The sensitivity analysis shows that the higher we enter the short in the envelope the better the trade." What are the signs that it is preferable to wait for price to get higher? What should we look at?

Jarek
This is what the stats show. But the stats also shows that the probability for the price to reach more extended levels is lower too. This means that if we wait too long for the best prices, then we might miss a good trade.

Then it is up to the trader to decide: "I want the perfect trade" or "I am ok with just a good trade"
This all depends on your portfolio situation, the way you trade,... this depends on you.

No stat will take the trade. The trader must take the trade and live with it.


Pascal