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The Overnight Edge
In this article I’m going to highlight a trading edge that appears in many different instruments and markets including both the futures and equity markets. It’s an edge that has persisted for well over...
View ArticleTop 5 Essential Beginner Books For Algorithmic Trading
Algorithmic trading is usually perceived as a complex area for beginners to get to grips with. It covers a wide range of disciplines, with certain aspects requiring a significant degree of mathematical...
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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...
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What Trading System Failure Means: Defining and Quantifying Strategy Failure,...
On my last blog post we discussed how we can detect system failure based on some statistical thresholds that can tell us with a high confidence that our strategy has stopped performing in the manner...
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Questions About The Overnight Edge
I’ve received a couple of questions in regards to the Overnight Edge study that I think you may find interesting. As a reminder, the Overnight Edge study demonstrates that points gained in the S&P...
View ArticleThe Prophet’s Tale
An interesting look into starting a small business with Tim Knights’s journey with Prophet Financial Systems, founded in 1992. Part 1 Part 2
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Is This Market Worth Trading?
Before trading a particular market it might be a good idea to first ask, how much potential profit can I squeeze out of the market? This would then lead to an even more important question, is this...
View ArticleCan Algorithmic Traders Still Succeed At The Retail Level?
It is common, as a beginning algorithmic trader practising at retail level, to question whether it is still possible to compete with the large institutional quant funds. In this article I would like to...
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Higher Time Frame Stops Strategy Tool
This article deals with a tool to help you test various stops when building trading systems in TradeStation’s EasyLanguage. This topic is really part 2 of the article, “Advanced Stops and Targets...
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The Bullish Outside Month
I came across an article over at the blog, Jay On The Markets, that talked about applying a bullish outside indicator on a monthly chart. The article I was reading is titled, “One Sign That the Bull...
View ArticleEffective Indicators for Trading Strategies
John Ehlers always has interesting indicators. Below is a video presentation where he highlights specific indicators for trading strategies.
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Profit By Combining RSI And VIX
We’ve been talking a lot about the RSI indicator lately and rightly so. It has proved to be a valuable indicator at highlighting potential turning points. Just last week we took a look at using the VIX...
View ArticleSuccessful Backtesting of Algorithmic Trading Strategies, Part 1
This article continues the series on quantitative trading, which started with the Beginner’s Guide and Strategy Identification. Both of these longer, more involved articles have been very popular so...
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Inverting The RSI and VIX Strategy
Today we look at a reader’s question and reverse our RSI and VIX strategy to take short positions. Let’s do this and see if any edge awaits us. As pointed out in a previous article, “Profit By Combing...
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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 Seven strategy. If you recall, the Double Seven strategy is a long-only strategy for the the broad U.S....
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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...
View ArticleSuccessful Backtesting Of Algorithmic Trading Strategies, Part 2
In the first article on successful backtesting we discussed statistical and behavioural biases that affect our backtest performance. We also discussed software packages for backtesting, including...
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Welcome Kevin Davey
I would like to welcome Kevin Davey as our latest member of our Expert Panel for System Trader Success. Kevin is a professional trader and avid system developer who has won three consecutive World Cup...
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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...
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Seasonality And The Ivy-10 Portfolio
As the common saying states, “Sell in May and go away.” As we are now in early August our seasonality trigger has recently triggered a sell signal. So, through May, June and most of July we continued...
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