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 Scalping Strategy, Part 2 Testing A Euro Currency Futures Scalping Strategy, Part 3 Testing A Euro Currency Futures Scalping Strategy, Part 4 With regards to testing different filters, you’ll notice that I always go back to the baseline system when testing a new filter to help reduce over-fitting the system to the historical data. It is on the baseline system where it will determine if […]Read more ›
Post Tagged with: "TradeStation"
It’s time to look at another simple trading system which can be found in the book, ”Short Term Trading Strategies That Work” by Larry Connors and Cesar Alvarez. In this article we are going to look at the Double 7 strategy. This is a simple strategy that can be applied to the major market indices such as DIA, DOW and QQQ. It can also be applied to the futures markets. The rules of this system are very simple. The instrument must be above its 200 day moving average. If the instrument closes at a 7-day low – buy. If a long position is open and the instrument closes at a 7-day high – sell. The trading system follows two basic concepts we have talked a lot about on this […]Read more ›
In the October issue of Futures magazine author Jean Folger discusses an important aspect when selecting two or more indicators when developing a trading system. While I don’t recommend simply combining indicators to create a trading system, and I don’t think that’s what Folger is suggesting either, when there comes a time to introduce two or more technical indicators to a trading system, this is when Folger’s advice is relevant. The author highlights a common mistake when selecting two or more indicators that could really hinder the performance of your system. By following Folder’s advice you can multiply the effectiveness of your system by selecting two or more indicators when done properly. Types of Indicators When it comes to technical indicators we are talking about mathematical formulas that are applied to price or volume. These technical indicators include MACD, Moving Averages, […]Read more ›
Warren Buffet has been quoted many times as saying, “If I don’t understand it, I don’t invest in it, no matter how attractive it may appear.” I love that quote for a number of reasons, but I think it’s a great advice for system traders as well. We (myself included) have a tendency to get hypnotized by really pretty equity curves and big profit factors, but if you have no idea how those two things are being achieved, you’re on shaky ground to say the least. I’m really big on keeping things as simple as possible for several reasons: 1. Simplicity means it’s easy to understand why your edge exists (and just as importantly why it could stop working), and […]Read more ›
In this post I highlight Market Club’s Trade Triangles and create a free trading system suitable for trading ETFs in a retirement account. I think you will be impressed with the results!Read more ›
In a previous article called “System Performance and Confidence Interval“, I showed how a statistical method could be used to analyze historical trading results to give us an idea if the system would likely fail in the future. In this article I would like to introduce a mathematical formula which can be applied to any trading system and used as an objective score to compare and rank different trading systems. When it comes to trading systems, no two are alike. There is a vast number of different trading styles that cover the range from simple tick scalping to multi year investment models. Of course, there is a huge number of different instruments and markets to trade. How would one determine […]Read more ›
If you are a Mac owner who has always wanted to trade Emini futures using TradeStation but thought it was impossible well, think again! It is possible to run TradeStation using a Mac computer without making any sacrifices to the performance of the trading software.Read more ›