Trading distilled down to its simplest form is a pattern recognition numbers game. We use analysis to identify patterns, define risk and determine profit targets and the trade works or it doesn’t. In either case we go on to the next trade. This is simple to comprehend yet extremely difficult to do. In fact, trading is probably the hardest thing you’ll ever attempt.
I started my trading journey back 1999 and made more money in a year than I’ve seen in a lifetime.Unfortunately, I lost it all within the next year when the market turned down. It didn’t take long to realize I didn’t know what I was doing and the only reason I made it as good […]
I’m a very good example of what you should not do as a trader. I’ve been trading for almost 20 years and have made every mistake imaginable to mankind (womankind?) in this arena. Yet I’m still standing because I have learned from my mistakes (well mostly). Without a doubt, one of the most important lessons […]
Recently, while traveling through the Northwest, I had the opportunity to share coffee with Jane and talk with her about algorithmic trading and systems development. We discussed at length the trials and tribulations of our respective trading journeys. She suggested that it might be an interesting post to hear from a member as to how […]
Rolling returns are used to look at the returns of any system for the holding periods similar to those actually experienced by investors because it breaks a performance period into many smaller, overlapping periods, kind of like slowing a movie down to study it frame by frame.
What to do when we get filled at daily lows (or daily highs if shorting)? This is a very good “problem” to have but we still need to make sure we’re being fair to all members.