All posts by System Trader Success Contributor

How to Trade the MACD: A High-level Analysis of the MACD Line Feature

Moving Average Convergence Divergence (MACD) is one of the most popular technical indicators used by traders. It is a flexible indicator that can be used for determining the strength and direction of a trend. It has three distinct features and in this first post we are going to do a high-level analysis of one of those […]

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Are you losing when you should be winning? Here’s something you might be missing

Most people think about where to get into and out of positions. Nearly all traders know how important it is to follow their rules, and the majority of them always work toward being more disciplined. These are important pieces of a successful investment strategy, and most traders work on these things. But there’s one thing […]

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Using a Self-Similarity Metric with Intraday Data to Define Market Regimes

The images above are the famous Sierpinski Triangle and the Koch Snowflake. These objects are “self-similar” and this means that examination at finer levels of resolution will reveal the same shape. Both are examples of “fractal” geometry, and are characteristic of many phenomena in the natural world such as mountains, crystals, and gases. Self-similar objects […]

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Sharpe Ratio – the right answer to the wrong question?

TradingEdgeVisualiser

Sharpe was the right answer First, let’s start with what Sharpe does well. There are two things it does well: Cross-asset unified measure: we all know that the most important component in alpha generation is asset allocation. Now, the difficulty is to have a single measure of risk-adjusted measure of alpha. This is where Sharpe […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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