Are Breakeven Stops Worth The Effort?
One favorite "gotta have" of many traders is a breakeven stop. By not letting a winning trade become a loser, the psychological lure of breakeven stops is strong. This is especially true for...
View ArticleMultiplex For Greater Profit
Two problems that often result from system optimization are: (1) a reduction in the number of trades, a system that generates too few trades can both be more difficult to trade and a low number of...
View ArticleBuilding A Better Trend Filter
In this article I will create a trend filter (also known as market mode filter or regime filter) that is adaptable to volatility and utilizes some of the basic principles of hysteresis to reduce false...
View ArticleMarket Phase – Going Beyond The Death Cross
There are many ways to use indicators to help determine when the market is within a bull or bear mode. A common method that works well on trending markets over the long-term has been the so-called...
View ArticleImproving The Double Seven Strategy
In this article I want to take a look at a reader’s recommendation on improving the Double Sevenstrategy. If you recall, the Double Seven strategy is a long-only strategy for the the broad U.S....
View ArticleDual Momentum – The Famous 5 Portfolio
This article describes a Dual Momentum study over a multi-asset ETFs basket with a new attempt to improve this well-known investing style. Dual Momentum **strategies rely on two different very simple...
View ArticleTwo Dimensional Market Environment Filter
In this article I’m going to demonstrate a technique to help adapt your trading systems to the changing market conditions. In a previous article entitled, “Trend Testing Indicators“, I tested several...
View ArticleImproving The Moving Average Crossover System
Let’s take a look at a simple moving average crossover system and see if we can improve it. Specifically, can we improve the moving average system’s performance by reducing the number of whipsaws...
View ArticleThe Different Types of Trading
“Algos” and “algorithms.” These two words strike fear into the hearts of many a trader. Visions of computer programs running wild, buying and selling with reckless abandon, are a common nightmare. A...
View ArticleStep One In Building An Intraday Trading System
If you have been reading System Trader Success for a while you’re probably familiar with how I develop trading systems. The very first step is to come up with a simple idea to act as the seed or core...
View ArticleThe MVCI (Whatever That Means) Indicator
Some people tell me that I have “too much time on my hands” because I spend so much time “crunching numbers”. I tell them, “That’s ridiculous, I don’t have any time on my hands because I am so busy...
View ArticleIntro To Algo Trading
In Part 1 of this series, I discussed the different types of trading which includes algorithmic, discretionary, and hybrid trading. Let’s say you are intrigued by algorithmic trading. What is it...
View ArticleGetting Down To Business!
In the previous parts of this 3-part article (see part 1 and part 2), I introduced you to algo trading, and then discussed features of algo trading, along with advantages and disadvantages.Algo trading...
View ArticleHedging a $500k Portfolio With Optimal Puts
A reader recently emailed me, asking how he could hedge a “typical $500k mutual fund portfolio”. I’m going to walk through a step-by-step example of doing that in this post.Step One: Choose A Proxy...
View ArticleImproving The Moving Average Crossover System
Let’s take a look at a simple moving average crossover system and see if we can improve it. Specifically, can we improve the moving average system’s performance by reducing the number of whipsaws...
View ArticleRisk-Based Position Sizing
Let’s start with a thought experiment. Let’s say we have two traders who are each given identical trading systems to execute on the SPDR S&P 500 ETF (SPY). Because both systems are identical...
View ArticleBest Times To Day Trade
If you are developing a trading system to trade intraday charts you might want to know when are the best times to day trade. This article is aimed at those who enjoy opening and closing a trade within...
View ArticleDown 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...
View ArticleBattle of the Oscillators…Round 2
In a past article, Predictive Indicators written by John Ehlers, he highlighted a unique indicator used to time market cycles. This indicator is a heavily modified Stochastic Oscillator and was...
View ArticleIntermarket State Divergence
For the past 20 years I had been teaching my concept of Intermarket Divergence for generating trading signals. You can learn about this concept in a previous article, "Intermarket Divergence – A Robust...
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