All posts by System Trader Success Contributor

Broken Strategy or Market Change: Investigating Underperformance

Broken Strategy

I recently had someone email me about the performance of a strategy I created back in late 2005/early 2006 and traded for a few years. I remember the strategy being a daily mean reversion set up with an intraday pullback entry. I figured it probably had not done well over the last decade. I stopped […]

Continue reading

Creatures of Habit

human or algorithm executing entries and exits

“Creatures”, in this case =  human or algorithm executing entries and exits.I was searching for a generic photo that has the different days of the week, but in different languages, when I came across this graph, which shows historical Days of Week averages of patients waiting for CT scans… which you may think has absolutely […]

Continue reading

4 Ways to Increase my Discipline

4 Ways to Increase my Discipline

In the following rows I’d like to share with you three ways I use to increase my discipline which is the cornerstone of every successful trader I know. The discipline is often the missing part of many traders who try to conquer the financial markets. The below presented routines are not hard to do and […]

Continue reading

4 Reasons Why Scalpers Could Be Dangerous

In this article I am going to share with you four reasons why scalpers could be dangerous and everyone who would commit money to trade with such short-term strategies should be extremely cautious and mindful. Although potentially the shorter-term a strategy is, the more profits can be earned, and there are reasons why the real […]

Continue reading

Looking Into The Ulcer Index

Investors utilize a variety of performance and risk metrics to evaluate strategies. These numbers provide a summary of what happened to the strategy historically and can be useful to quickly compare different strategies. To use these statistics effectively, it is helpful to look at some of the nuances of those frequently cited and cases where […]

Continue reading

Why I Prefer Trailing Stops

Whether you trade stocks, bonds, Forex, commodities, or other financial instruments, or whether you are short-term, intermediate, or long-term trader I am sure you will agree with the next sentence – “Being in sync with the market is vital for success“. It applies for both automated and discretionary investors. In this article, I will share […]

Continue reading

In-Sample and Out-Of-Sample Testing

I am frequently asked if I do out-of-sample testing. The short answer is not always and when I do, it is not how most people do the test. There are lots of considerations and pitfalls to avoid when doing out-of-sample testing. Out-of-sample testing is not the panacea it is made out to be. There are […]

Continue reading

Searching for an Efficient Market Regime Filter

The probability of our long term success as traders increases when we trade with the prevailing market trend. This means when trading stocks we should be buying when the overall market is rising and/or shorting when the overall market is falling. In order to filter trading opportunities therefore, we need an efficient way of determining the current […]

Continue reading

The Better Rotation Indicator

The Better Rotation Indicator uses 8 major ETFs to track Global Macro trends. This indicator helps visualize the rotations from one Global Macro asset class to another – from unloved and over-sold to hot and being chased by the herd. Right now (4Q 2016) we’ve got a rotation taking place as Government Bonds get overtaken […]

Continue reading

Why You Should Really Optimize and Even If You Don’t

optimization

Why You Really Should Optimize And Even If You Don’t… Today’s topic is on optimization. Some system developers don’t believe in optimization. However, I’m going to show you why you should really learn how to optimize, and second I’m going to demonstrate that even if you don’t believe in optimization then “not optimizing” is not […]

Continue reading
1 2 3 6
>