Educational Trading Articles

A None-Random Walk Down Wall Street


Based on my own personal experience of thousands of hours studying and analyzing countless charts, I can confidently say that markets are no ‘random walk’. As a serious data-oriented trader, that has analyzed price action very closely for the past 15 years, I can attest to this as an absolute truth. Nevertheless, because there is so much noise and volatility, markets do seem and feel as a random walk, but not for the sophisticated and well-accomplished market practitioners. 

One of the biggest virtues of the Cross-price Matrix™ model is its ability to dissect price action into highly organized formations. these organized formations are the basic framework to all of my trading activities, regardless of any specific market I happen to deal with. As a matter of fact, the CP-Matrix model is a living proof of the none-randomness nature of markets movement. By containing price action with all its chaotic noise, the model allows us to establish a solid trading plan with a fantastic risk to reward ratio. Furthermore, the model also allows us to generate price predictions with laser sharp precision, mainly due to the cyclical nature of price action, which dictates the direction of the underlying trends beneath the surface of the visible noise.

Back in the sixties, a very famous book called “A random walk down wall street” was written. This book that gradually became legendary in the financial community, was decisively concluding (to the great disappointment of all technical analysis users) that markets price movement is completely random. Not a shred of order or any predictive value. Well, to say that the Cross-price Matrix methodology is seriously challenging that notion would be an understatement. In fact, it perfectly demonstrates how more than anything else, markets are very much none-random in their nature. 

After almost two decades of analyzing countless charts, there is absolutely no one who can convince me that market movements are random. Burton G. Malkiel, the respected author of “A random walk down wall street” was simply failing to see what experienced and successful traders do, which is the built-in order of the markets, hiding below the smoke screen of overwhelming noise. Now, I bet Burton would have come to a different conclusion had he had the Cross-price Matrix model at his disposal back at the time he announced to the world about the complete randomness of financial markets price movement. I honestly believe that having a reliable tool that helps you to separate the noise from the real (and predictive) movement is a key component to the success of most accomplished traders.            

Unfortunately, that’s not enough. That is only one leg in this three-legged stool. On top of that, you still have to establish a sound and fully systematic trading approach, which would act as the second leg of our imaginary stool. The third leg would be establishing an efficient risk and money management mechanism, as well as the discipline to carry it out methodically.

Sound like a lot of work, right? Well here are some good news! Bulletproof Traders are fully committed to helping you develop your analytical and trading skills while keeping a clear vision on getting you to that next level of success, no matter where you are in the process right now.

Joining Bulletproof Traders members-only trading club will grant you full access to a one-of-a-kind, all-in-one trading support package that will help you to “earn while you learn” to become a professional trader. Don’t miss out on this unique opportunity to learn from the masters of trading themselves.

Roy Cuzin 

Head trader and CEO at Bulletproof Traders