Market Seasonality Study

With November almost over I thought it would be a good idea to review our Market Seasonality Study. If you will recall, back on May 18 of this year we closed our or seasonality trade in anticipation for a traditional weak period of the stock index markets. That is, the months of May, June, July, August, […]

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The Internal Bar Strength Indicator

The internal bar strength or (IBS) is an oscillating indicator which measures the relative position of the close price with respect to the low to high range for the same period. The calculation for Internal Bar Strength is as follows… IBS =  (Close – Low) / (High – Low) * 100; For example, on 13/01/2016 the QQQ […]

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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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Finding Out What Works, And What Doesn’t Work

Many traders who try system trading have previously had difficulty at discretionary or manual trading. Most of these folks eventually recognize the benefit of trading a system with well defined rules – a system that has performed well in the past. It is nice to know a trading approach has historically worked, but as with […]

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How To Create A Multi Agent Trading System

In a previous article I demonstrated how to build a strategy that will trade the equity curve. That is, a strategy that will stop trading when the equity curve falls below a simple moving average. Lets look at a different technique that not many retails traders are aware of. In particular this technique is difficult […]

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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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Trading The Equity Curve & Beyond

Some trading systems have prolonged periods of winning or losing trades. Long winning streaks followed by a prolonged period of drawdown.  Wouldn’t it be nice if you could minimize those long drawdown periods?Here is one tip that might help you do that. Try applying a simple moving average to your trading system’s equity curve. Then, […]

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Getting Started with Neural Networks for Algorithmic Trading

If you’re interested in using artificial neural networks (ANNs) for algorithmic trading, but don’t know where to start, then this article is for you. Normally if you want to learn about neural networks, you need to be reasonably well versed in matrix and vector operations – the world of linear algebra. This article is different. I’ve attempted to provide […]

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Secret Weapon of Stock & ETF System Development

This is the second article in a two-part series where I discuss the top three pitfalls when backtesting Stock & ETF trading systems. In the first article, The Top Three Pitfalls of Stock and ETF System Development, I highlighted the top three issues system developers face. In this article, I’m going to show you how […]

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Randomly Pushing Buttons

Randomly Pushing Buttons

Before my current circumstances, and before I was a photographer (see above), I used to make music for a living. Specifically, weird-ass techno/electronic music that many people found difficult or annoying. One of the ways I would find sonic inspiration was to use audio software to generate random sounds. I would record this stream of […]

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