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.
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alphabetical order | posting date
S&P 500 3-Day Advance Issues
I wrote an article on the concept of 3-Day Advance Issues in the Futures magazine - Using market breadth in trading systems, in the January 2008 issue. As oppose to repeating what was written in the article, I will focus on the discretionary aspect o ...
I wrote an article on the concept of 3-Day Advance Issues in the Futures magazine - Using market breadth in trading systems, in the January 2008 issue. As oppose to repeating what was written in the article, I will focus on the discretionary aspect o ...
Counter-Trend Trading with Simple Range Exhaustion System
Here is an extremely simple trading system that violates the classic rule of trading, trend is your friend, with very good results. It is an excellent example that illustrates how counter-trend approaches work. Simple Range Exhaustion System ...
Here is an extremely simple trading system that violates the classic rule of trading, trend is your friend, with very good results. It is an excellent example that illustrates how counter-trend approaches work. Simple Range Exhaustion System ...
Better OddBall System
The original OddBall System no longer performs since end of year 2001 (see OddBall System - An Update). Here is an attempt to improve the system. The Issue The original Oddball system no longer performs due to the change in the behaviour in ...
The original OddBall System no longer performs since end of year 2001 (see OddBall System - An Update). Here is an attempt to improve the system. The Issue The original Oddball system no longer performs due to the change in the behaviour in ...
Stock Trading Using Stochastics (End of Day)
Stochastics is one of the most widely used technical indicators in the world. Surprisely, most traders like to modify the original indicator into something else because they find the original implementation too noisy. I am going to show you a trad ...
Stochastics is one of the most widely used technical indicators in the world. Surprisely, most traders like to modify the original indicator into something else because they find the original implementation too noisy. I am going to show you a trad ...
Moving Average Is More Than What You Think - Part 4
The trading system presented in Formula 301 #3 Intraday Moving Average Crossover with Position Sizing is a moving average based trading system that works year after year. Following is a reprint of that article. Many users are very intereste ...
The trading system presented in Formula 301 #3 Intraday Moving Average Crossover with Position Sizing is a moving average based trading system that works year after year. Following is a reprint of that article. Many users are very intereste ...
Classic Day Trade Modelling
Before we have access to intraday day data, how do we test trading systems that last only a day? Long time ago, thats all we have access to, and I think it is a good idea for our readers to see how traders utilize classic bias without the help of ...
Before we have access to intraday day data, how do we test trading systems that last only a day? Long time ago, thats all we have access to, and I think it is a good idea for our readers to see how traders utilize classic bias without the help of ...
Trading System 101 - Part 3 Practical Considerations
Many traders spent weeks, even months to create their perfect trading models. Happy with the results they see in their backtesting, and tracked the real-time performance for certain period of time, they are ready to take the leap of faith to trade th ...
Many traders spent weeks, even months to create their perfect trading models. Happy with the results they see in their backtesting, and tracked the real-time performance for certain period of time, they are ready to take the leap of faith to trade th ...
Advance Issues Momentum - An Update
I have written an article called Advance Issues Momentum published in the Technical Analysis of Stocks and Commodities magazine, August 2004 issue. Here is an update about this interesting indicator. The Concept Advance Issues Momentum is a ...
I have written an article called Advance Issues Momentum published in the Technical Analysis of Stocks and Commodities magazine, August 2004 issue. Here is an update about this interesting indicator. The Concept Advance Issues Momentum is a ...
Oddball System - An Update
OddBall is created by Mark Brown, and was featured in Active Trader magazine. It is a trading system designed for trading the S&P index future (or the emini counterpart). The signal generation of Oddball does not depend on the price data itself. Inst ...
OddBall is created by Mark Brown, and was featured in Active Trader magazine. It is a trading system designed for trading the S&P index future (or the emini counterpart). The signal generation of Oddball does not depend on the price data itself. Inst ...
In Early Stage Of System Development, Avoid Position Sizing
Many beginners in trading system development like to play with position sizing scheme. It feels great when you get a great equity curve with spectacular performance by simply twisting what position sizing rules to use and experiment with various sizi ...
Many beginners in trading system development like to play with position sizing scheme. It feels great when you get a great equity curve with spectacular performance by simply twisting what position sizing rules to use and experiment with various sizi ...
