HOW TO Document your RESEARCH using TradingViewDocumenting your research as a trader is not just beneficial—it's essential. After a decade in the trenches, I know that organized, thorough documentation can make the difference between a profitable strategy and a missed opportunity.
TradingView is not just a charting platform, it is also a journal, a diary, for ALL your trading ideas. The features it has are enormous. You can literally screenshot/snip your screen or part of it from another window and then CTRL+V it onto the chart itself.
Personal TIP: I picture my physical notes, then I put the picture inside next to the chart, then I save the chart image with a link, and then I put the link into the idea text, and it shows me the note, like here:
You can always revise your documentation and add to it as much as you want. The more evidence you can add, the more sound your pattern is, and the more confident you will be in putting your money on it, since you "KNOW" it should manifest because it is backed up by stock market logic and research.
The price will move, with you or without you, ask yourself always the question:
"Can this move be predicted beforehand?" and start your way from there...
Be honest with yourself, some moves just CANT be predicted, they come out of nowhere, but others CAN and WILL give you HUGE SIGNS... if you document them...
Here’s a structured approach to help you capture and refine your trading insights:
1. Find a Market Logic
Before diving into trades, establish a market logic—a hypothesis or theory that drives your trading decisions. This might stem from historical data patterns, news-driven market reactions, or economic indicators. Ensure your logic is grounded in data and has a clear basis for expected outcomes. This foundational step helps avoid random, emotion-driven trades.
2. Give It a Name
Assign a distinct and memorable name to your market logic. This helps you quickly reference and differentiate between multiple strategies. A good name can be as simple as “Earnings Reversal Strategy” or as creative as “The Phoenix Rebound.” Naming your strategy not only aids in documentation but also enhances your cognitive recall during decision-making.
3. Take Pictures of It
Documenting your strategy visually is crucial. Take screenshots of relevant charts, trade setups, and indicators. Annotate these images with key details like entry and exit points, stop-loss levels, and any other pertinent information. Visual aids can clarify your logic and make it easier to analyze past trades.
TradingView allows you to insert a chart into your research, giving you the most visual documentation possible.
By the way, if you are short in time, you can do a video of your documentation and speaking your idea of a strategy instead of writing it, much faster documentation. Also, much more interactive for future reference.
4. Write the Pros of It
Clearly outline the pros of your strategy. These could include:
Consistency: Does your strategy yield reliable results over time?
Risk Management: Does it have built-in mechanisms to minimize losses?
Simplicity: Is it straightforward to execute without complex calculations?
Adaptability: Can it be applied across different market conditions?
5. Write the Cons of It - Are You Maybe Wrong?
Be honest about the cons of your strategy. Acknowledge potential weaknesses:
Overfitting: Does your strategy rely too heavily on historical data, potentially failing in real-time?
Complexity: Is it too complicated to execute consistently?
Market Conditions: Does it only work in specific market environments?
Emotional Bias: Are there elements that could lead to biased decision-making?
6. Write the Limitations of It - Where It Works, and Why?
Define the limitations of your strategy. Clearly state where and why it works, and under what conditions it might fail:
Timeframes: Does it perform best on certain timeframes (e.g., daily, weekly)?
Market Phases: Is it more effective during trending or ranging markets?
Instrument Specificity: Does it work better with certain asset classes (stocks, forex, commodities)? Understanding these limitations helps you apply your strategy more effectively and avoid unnecessary risks.
7. Connect with Different Ideas - Do They Make Sense?
Finally, cross-reference your strategy with other ideas and strategies. This process involves:
Finding synergies: Does your strategy complement other existing strategies?
Seeking validation: Are there external sources or research that support your logic?
Peer Review: Discuss your strategy with fellow traders to gain different perspectives.
