Blog

A Flexible Trailing Stop Function

The Anatomy of a StopA stop can be defined by specifying four basic parameters, illustrated in Figure 1 below:Price Reference: The price from

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Reasonable capital required for day trading futures?

A good rule of thumb is that a reasonable risk per day for a day trader is from 2% to 5%. A moderate

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In-Sample and Out-Of-Sample Testing

I am frequently asked if I do out-of-sample testing. The short answer is not always and when I do, it is not

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3 Huge Algo Trading Mistakes To Avoid

For most traders, algo strategy development is merely a means to an end - a necessary evil to be endured on the

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A Project for TradeStation Day-Traders

Here is a neat little day trader system that takes advantage of what some technicians call a “CLEAR OUT” trade.  Basically traders

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Better RSI Entries

Mean reversion systems, such as those based on RSI, suffer significant performance degradation when stop losses are applied for risk control. In

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Why You Should Really Optimize and Even If You Don’t

Why You Really Should Optimize And Even If You Don’t… Today’s topic is on optimization. Some system developers don’t believe in optimization.

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Are your backtest results fooling you?

Have you ever started trading a strategy that performs well in the backtests but delivers a very different result when you begin trading it

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Is The Christmas Season Bullish For U.S. Markets?

With the Christmas season upon us, I thought it would be interesting to review how the S&P behaves in the days just

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World’s Simplest Trading System

[NB. OK, it's possible that this isn't absolutely the simplest trading system imaginable, but apart from buy and hold it is unlikely

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Top 4 Myths of System Trading

So you want to become a successful system trader. That's great! Back in 2006, I had a great idea. I was going

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Does The Predictive Voss Indicator Work?

The August 2019 issue of Technical Analysis of Stocks & Commodities magazine John Ehlers proposed an interesting looking indicator. This indicator is

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Using Metals to Trade Bonds

Sometimes things in the financial markets are pretty obvious if one is willing to see them.  Despite all of the angst that

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Can A Price Pattern Beat an Indicator?

I've seen people use simple price action patterns in place of inicators. For example,  Larry Connors and Cesar Alvarez really popularized the

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Stops – When Not to Use Them

Using a stop on a position is a very popular risk management technique used by traders. My research and experience has led

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Development of Intermarket Trading Systems

In my past article, Intermarket Is Fundamentally Sound,  I covered some of the basic premises and history of intermarket trading systems. While the

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Intermarket Analysis is Fundamentally Sound

Intermarket analysis is a powerful tool that a trader can use to get an edge on the market. This type of analysis

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The Road to Finding Intermarket-Based Turning Points

I developed the concept of intermarket divergence approximately 20 years ago. It has proved to be a powerful concept since then. Reflecting

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A Cool And Easy Way To Analyze Chart Patterns With TradeStation

Have you every tested different combinations of closing or opening relationships to uncover the following days probability of either closing up or

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