Trading System Concepts and Design
Trading models are created so that the so called human factor can be minimized. Most of the time, production trading models are utilized by firms like hedge funds and larger institutions. Retail traders having access to backtesting tools like TradeStation and other trading platforms can build their own trading systems easily but rarely do they successfully deploy any models to trade their own money.
Over the years I have helped many hedge funds and pro traders developing, refining and maintaining trading models. The sharp contrast between professionals and the retail traders in understanding what trading systems are driving me insane sometimes.
Here is a partial list of articles I have written on building trading system over the years. I have organized the material below into several sections so that it would be easier to find them. Whenever I can locate the rest of the articles I have written will add them here.
Error, group does not exist! Check your syntax! (ID: 9)
alphabetical order | posting date
Sharpe Ratio and Sortino Ratio Calculator for Day Trading Strategies
After I explained in the article, How to Calculate Sharpe Ratio and Sortino Ratio Correctly on Day Trading Strategies, many readers have asked for example on how to calculate the Sharpe Ratio themselves given that all platforms are not reporting the ...
After I explained in the article, How to Calculate Sharpe Ratio and Sortino Ratio Correctly on Day Trading Strategies, many readers have asked for example on how to calculate the Sharpe Ratio themselves given that all platforms are not reporting the ...
Why Do Laurence Connors Market Breadth Trading Strategies Stopped Working?
The interest of using market breadth to time the markets can be attributed to one person, Laurence Connors, thanks to his influence book Investment Secrets of a Hedge Fund Manager. The book was published back in year 1995. The strategies explained in ...
The interest of using market breadth to time the markets can be attributed to one person, Laurence Connors, thanks to his influence book Investment Secrets of a Hedge Fund Manager. The book was published back in year 1995. The strategies explained in ...
A Comparison of Hardware Performance on TradeStation Optimization of a Mechanical Day Trading Strategy
In the process of reorganizing my computers for faster turnaround time, I ended up with Tradestation installed across three computers. The thought of comparing the optimization speed on these machines just popped up. So I jumped in getting that done. ...
In the process of reorganizing my computers for faster turnaround time, I ended up with Tradestation installed across three computers. The thought of comparing the optimization speed on these machines just popped up. So I jumped in getting that done. ...
What We Can Learn from a Simple Yet Robust Mechanical VIX Based Swing Trading Strategy 
Many traders love to know how to utilize various market breadth statistics to improve their trading. However, majority of the narratives out there are all guess work based on visual inspection and speculation on how a market breadth statistics can be ...
Many traders love to know how to utilize various market breadth statistics to improve their trading. However, majority of the narratives out there are all guess work based on visual inspection and speculation on how a market breadth statistics can be ...
Defensive Money Management Explained: How to Evaluate a Trading Strategy (or Your Edge) Objectively 
One of the fundamental questions that we have to ask ourselves when we see a profitable trading strategy is that whether the strategy will reform well in the future. All kinds of testing are invented from walk-forward testing to Monte Carlo simulatio ...
One of the fundamental questions that we have to ask ourselves when we see a profitable trading strategy is that whether the strategy will reform well in the future. All kinds of testing are invented from walk-forward testing to Monte Carlo simulatio ...
The Real Secret of Trend in Day Trading: Finding the Point of No Return
We often hear traders talking about trend – trend is your friend, do not fight the trend, etc. Yet we seldom hear a room full of traders agree upon what the current trend is. This casual observation leads many people to believe price based analysis ...
We often hear traders talking about trend – trend is your friend, do not fight the trend, etc. Yet we seldom hear a room full of traders agree upon what the current trend is. This casual observation leads many people to believe price based analysis ...
Update on Quid Piker the British Pound Trading System
It has been a year since I published the Quid Piker trading system for British Pound. I guess it is a good time to review the model and discuss about forward expectations of trading systems. Update on Performance Following is the net pip gains char ...
It has been a year since I published the Quid Piker trading system for British Pound. I guess it is a good time to review the model and discuss about forward expectations of trading systems. Update on Performance Following is the net pip gains char ...
Overnight Bias: Emini Night Owl Long Play
Emini Night Owl Long Play trading system is designed to take advantage of the overnight range expansion behaviour mentioned in the Emini S&P Afterhours Behaviour series. This model has strict control on risk and performed very well over the past ...
Emini Night Owl Long Play trading system is designed to take advantage of the overnight range expansion behaviour mentioned in the Emini S&P Afterhours Behaviour series. This model has strict control on risk and performed very well over the past ...
Intraday Bias: Emini Strong Close Gap Down
The trading models presented in this article is direct application of the gap classification framework from Master Emini S&P Gap Trading Techniques. I am talking about trading models because there are multiple ways to take advantage of the bias, ...
The trading models presented in this article is direct application of the gap classification framework from Master Emini S&P Gap Trading Techniques. I am talking about trading models because there are multiple ways to take advantage of the bias, ...
A Case Study: Aggressive Gap Fill Trading System to Day Trade the E-mini S&P
This is a case study of a trading system presented in the eBook, Aggressive Gap Fill Trading System to Day Trade the E-mini S&P, written by David Bean. The trading system presented in the book is a simple one and the past performance presented in ...
This is a case study of a trading system presented in the eBook, Aggressive Gap Fill Trading System to Day Trade the E-mini S&P, written by David Bean. The trading system presented in the book is a simple one and the past performance presented in ...
