Day 31: Entry Price & Direction Analysis

Topic: Entry price sweet spots and directional bias analysis
Date: 2026-03-13
Status: βœ… COMPLETED

Research Question

What entry price ranges and trade directions perform best?

Data Analysis

Entry Price Sweet Spot

Analyzed 416 trades from trade-journal.json:

Entry Price Trades Win Rate Avg PnL
$0.30-$0.40 35 74.3% $12.92
$0.40-$0.50 198 71.7% $6.03
$0.50-$0.60 159 70.4% $3.98

Finding: Lower entry prices ($0.30-$0.40) have 2-3x higher PnL per trade. However, liquidity may be lower at these prices.

Directional Bias

Direction Trades Win Rate
UP 181 75.1%
DOWN 235 69.8%

Finding: UP trades win 5.3 pp more often than DOWN trades.

Stop-Loss Analysis

Current stop-loss triggers at ~18-24% loss. Analysis shows: - 5% stop: stops 173 trades (41%) - 10% stop: stops 157 trades (38%) - Current system: stops 26 trades (6%)

Finding: Tighter stops reduce total exposure but may cut winning trades early. Current system lets winners run (avg hold 2.6 min, 72% win rate).

Key Insights

  1. Entry price matters β€” lower entry = higher PnL (confirmed earlier research)
  2. UP bias β€” 75% win rate vs 70% for DOWN
  3. Let winners run β€” current system is correct (doesn’t use tight stops)

Recommendation

NOT DEPLOYABLE β€” Current system is already well-optimized. The entry price finding confirms existing $0.30-$0.55 sweet spot from prior research. Directional bias is marginal (5 pp) and may be regime-dependent.

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