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The Laguerre RSI vs Classic RSI

John Ehlers is a name you’ll run across when you start your journey into testing various indicators and filters to be used in your trading models. I remember reading about the Laguerre Filter and Laguerre RSI many years ago when they first appeared on the scene. At the time I was not nearly into quantitative […]

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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 […]

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Can You Time the Market Using Nothing But Moon Cycles?

Many moons ago… (see what I did there) when I was in my infancy as a trader, I was a regular in a chat room of what used to be pivotfarm where they had a free tool in beta testing that was basically an audio “tape reader.” It would make popcorn sounds when big selling […]

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Down Days Trading Model

I’ve written a lot about the 2-period RSI indicator popularized by Larry Connors and Cesar Alvarez. This indicator highlights significant pullbacks which can often be buying opportunities within major market indexes like the S&P.  Pullbacks in the market are a result of the market closing down. That means, today’s close is lower than the open. So, […]

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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, […]

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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 […]

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Market Seasonality Study

November is here and that means the start of a historically strong period for the U.S. markets. This is a well known seasonality period which runs from November to May.  While it’s true the U.S. markets experienced a Death Cross formation not very long ago,  the market has since rebounded nicely. The Death Cross formation is still in […]

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The Perils of Buying Trading Systems

Ugh. I’ve done it again. I bought a “can’t miss” trading system I saw on the Internet. What looked so good in the advertisement turned out to look just as bad when I traded it with real money. This seems to happen to me EVERY time I buy a system. Why? Sound familiar? It certainly […]

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Testing A Euro Currency Futures Scalping Strategy, Part 6

In an attempt to make this system more tradable, I’ve looked at many different stop methods and filters. My hunt for a stop value resulted in concluding that a stop value really hurts its performance. This is not so unusual for a mean reverting strategy, such as the Euro scalping strategy. In an effort to […]

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Testing A Euro Currency Futures Scalping Strategy, Part 5

It’s been a couple of years since I reviewed this potential trading idea of a Euro currency futures scalping strategy. Over the series of articles, which are listed below, I’ve been combing filter to demonstrate how I add different filters to a system based on market conditions. Testing A Euro Currency Futures Scalping Strategy Testing A Euro Currency Futures […]

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