Gaining an Edge: The Importance of Using Statistics in Your Trading

BellaMike Bellafiore's (Bella's) Blogs1 Comment

I received this email from a reader, excellent developing trader, and potential future trading star. It needs no editing and has awesome value to traders.

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Came across this article that I thought you might like. It’s written by one of my brother’s poker friends. This guy happens to be one of the best NBA sports bettors of all time, and also a very well respected high stakes poker player. It’s kind of an old school article, but I think there are many similarities to trading. It illustrates how important it is to keep a detailed trading statistics/trading journals, and measuring specifically what setups work best for you. This guy has a proprietary database of every single NBA game in the past five years.

Article on great NBA sports bettor

Some good lines from the article:

It took me about nine months and a few hundred thousand to perfect the collection and organization of the data such a way that it is valuable for predictive purposes.

My numbers tell me that the corner three-point shot is the second most efficient shot in basketball next to the layup. Why do some teams spray three-pointers all over the floor?

I have been around sports betting and card playing for quite some time, so I definitely look at things a different way. Most people invest in mutual funds or the stock market, so when I hear someone say that they could make money betting on sports, but choose not to, to me it’s like someone saying they could beat the stock market but choose not too.

In the basketball analytic world (stat geeks) people talk of Offensive and Defensive Efficiency (points per possession). I take it a step further and break down the efficiency of different types of possessions. Possessions off of turnovers, made baskets, missed shots (broken down a step further types of missed shots), etc.

He also writes a great blog.

Have a great weekend!

One Comment on “Gaining an Edge: The Importance of Using Statistics in Your Trading”

  1. Incredible article and even better resource for to Horolobous’ blog. Nothing else to add other than a few years ago i played poker with the guy, was getting beligerant drinking margheritas, and got him to have his first drink in many years! he didn’t touch it though and probably took some of my money.

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