System Trader Success
Share It!

Category Archives for System Development

System Performance and Confidence Interval

When you review the performance of a trading model, how do you know it’s worth trading for? How do you know it’s the right system for you? How confident are you that it will continue to profit in the future? When it comes to evaluating your trading model there are many factors to take into account. […]

Continue reading

Back to Basics Part 2 – How to Succeed at Algorithmic Trading

Algorithmic Trading

–by Kris Longmore from blog Robot Wealth There is a lot of information about algorithmic and quantitative trading in the public domain today. The type of person who is attracted to the field naturally wants to synthesize as much of this information as possible when they are starting out. As a result, newcomers can easily be overwhelmed […]

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

Two Swing Trade Systems – Part 2

Yesterday I discussed two swing-trade systems that work pretty well in out-of-sample data. While each works differently, they overlap enough that you don’t get any benefit from running them both at the same time. One great thing about these two systems is that they’re dead simple to manage. Trade at the open or the close, […]

Continue reading

Testing Market Regime Indicators

Often when designing a system it’s important to keep the big picture in mind. What is the overall market doing? The most simple way to accomplish this is to break the market into two regimes: bullish and bearish. We are all aware that price action is a mirror of human psychology of market participants, therefore […]

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

The Art of Crafting an Automated Trading Strategy

For nearly every trader, there is one all-consuming question: How do you build a profitable strategy? Naturally, one would expect to dive straight into the statistics and begin crunching the numbers. Yet, before we delve further into the mechanics – and believe me there are plenty – I want to talk a bit about the […]

Continue reading

Strategy Testing – Violating These Steps Will Damage Your Account

One of the most rewarding experiences for a TradeStation trader is to pick up a performance report that proves their great strategy idea is indeed a profitable strategy. Strategy testing done properly, as is outlined in this article, can verify the efficacy of your trading strategy and give you confidence to start trading it. But be forewarned, […]

Continue reading

The Christmas Strategy Remains Bullish

With Christmas about four weeks away, I thought it would be interesting to see how the S&P behaves in the days just before Christmas. Do the days just before this holiday tend to be bullish, bearish, or neutral? To test the market behavior just before the Christmas holiday I will use the S&P Cash index back […]

Continue reading

Better To Buy Strength or Weakness?

Emotionally it’s a lot easier to buy on strength than to buy on weakness. Buying into a falling market feels unnatural. Your instincts warn that price may continue to fall resulting in lost capital. On the other hand buying when the market makes new highs feels more natural. Price is moving in your direction and […]

Continue reading
1 2 3 11