Forex encyclopedia

Entry opportunity is the time when a trader can open a position and has a higher probability to gain profit. Mostly, entry opportunities are considered only when a signal is formed. But, for every signal, there are more opportunities than just one. In short, as long as the highest or lowest point of the day isn't reached yet, you also have opportunities to open a position as many times as they are available. But how to calculate entry opportunities at a certain time? Let's use a pair with average daily range 100.0 pips, and price range between 0.00001 to 0.01000. Thus, a strategy with expected profit target of 30.0 will be: average daily range – expected profit = 100.0 – 30.0 = 70.0

Popular article: The Pareto principle in trading

According to official sources, the Pareto Principle was named after the economist and sociologist Vilfredo Pareto, who was born in Paris in 1848, but was Italian by nationality. From 1906, he began to notice certain economic patterns. For example, he noted that 80% of the land in Italy belonged to 20% of the population. Then, he formulated the principle, noting that 20% of the pods in his garden contained 80% of the peas. These and other regularities led to the fact that Vilfredo Pareto developed the “80/20 Rule”, which in general form looked as follows: 80% of the effects come from 20% of the causes.

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