Tom Basso's Coin Flip Study
Most new traders put nearly all their energy into perfecting entry points. In fact, I'd say about 90% of their focus is on just that, which can cause them to miss the bigger picture. Way back in the '90s, Tom Basso and Van Tharp looked into this with a study that showed that entries might not be as crucial as many think. They used a "Coin Flip" experiment across 10 futures markets with random entries and a trailing stop—and it still made money!
Assuming the study wasn’t biased, does this still hold up today? That’s what we set out to explore with a research project using Forex data. We also wanted to see if the Coin Flip strategy could stay profitable over time.
If you'd like a "decision maker", I have a simple one here. It gives you an FX major pair and a direction to trade.
In Trade Your Way to Financial Freedom, Van Tharp talks about how he and Tom Basso came up with this idea. During a seminar, Tom emphasized how crucial exits