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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...
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Multiplex 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...
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Building 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...
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Market 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...
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Improving 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....
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Dual 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...
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Two 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...
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Improving 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...
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The 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...
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Step 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...
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The 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...
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Intro 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...
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Getting 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...
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Hedging 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...
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Improving 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...
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Risk-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...
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Best 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...
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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...
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Battle 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...
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Intermarket 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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