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
Daytrading The Emini - An Update (Stochastic Midpoint Reversal System)
Back in August 2003, I have an article called Daytrading The E-mini published in the Technical Analysis of Stocks & Commodities magazine. It described a technique called Data Reduction that improves certain type of indicator performance drastical ...
Back in August 2003, I have an article called Daytrading The E-mini published in the Technical Analysis of Stocks & Commodities magazine. It described a technique called Data Reduction that improves certain type of indicator performance drastical ...
You Need More Than A Single Setup
Trading for a living requires a lot of discipline. It also requires a lot of streets smart if you trade discretionarily. One thing that many beginners missed is a basic concept of having multiple setups learned and practiced correctly. Pure comm ...
Trading for a living requires a lot of discipline. It also requires a lot of streets smart if you trade discretionarily. One thing that many beginners missed is a basic concept of having multiple setups learned and practiced correctly. Pure comm ...
Moving Average Is More Than What You Think - Part 3
Some readers are very forthcoming, they simply email me and complained to me for wasting their time in talking about moving average as something that is useful at all. I replied through email asking for their patience and wrapped up this third instal ...
Some readers are very forthcoming, they simply email me and complained to me for wasting their time in talking about moving average as something that is useful at all. I replied through email asking for their patience and wrapped up this third instal ...
Advance Issues Pattern 2
After demonstating a pure daytrading short signals in Advance Issues Pattern 1, we are going to look at the data to see if we can figure out a daytrading pattern that works from the long side. Since year 2000, the S&P 500 is in a major downtrend, is ...
After demonstating a pure daytrading short signals in Advance Issues Pattern 1, we are going to look at the data to see if we can figure out a daytrading pattern that works from the long side. Since year 2000, the S&P 500 is in a major downtrend, is ...
Whats the difference between daytrading systems and classic trading systems?
Classic trading systems hold their positions overnight, subjecting themselves to the risk of price shocks caused by breaking news, and changing fundamental environment. Daytrading systems do not have any of these disadvantages, making it very sexy in ...
Classic trading systems hold their positions overnight, subjecting themselves to the risk of price shocks caused by breaking news, and changing fundamental environment. Daytrading systems do not have any of these disadvantages, making it very sexy in ...
Open Range Breakout Daytrading System
Open range breakout system is a well known concept. It is a variation of the classic N-bar breakout system. This concept is so widely talked about because it works. I will show you a new twist of the concept that is never discussed anywhere else. ...
Open range breakout system is a well known concept. It is a variation of the classic N-bar breakout system. This concept is so widely talked about because it works. I will show you a new twist of the concept that is never discussed anywhere else. ...
One size fits all?
A lot of people asked this question many times - is there a trading system that works on all instruments and can be traded in real time with no change to the parameters at all? The answer is plain and simple - no. Trading systems are inherent ...
A lot of people asked this question many times - is there a trading system that works on all instruments and can be traded in real time with no change to the parameters at all? The answer is plain and simple - no. Trading systems are inherent ...
What profitable trading systems are made of ...
Most of the trading systems available in public are even not profitable or written by beginners. These systems are likely over optimized and not good for incorporating into your own usage. As someone who has been working with real life trading s ...
Most of the trading systems available in public are even not profitable or written by beginners. These systems are likely over optimized and not good for incorporating into your own usage. As someone who has been working with real life trading s ...
Trading System 101 - Part 1
Before you can create a trading system that you can trade in real life, you need to understand a lot of basic things about trading system. If you are willing to spend some time understanding the basics, it will likely save you a lot of time and energ ...
Before you can create a trading system that you can trade in real life, you need to understand a lot of basic things about trading system. If you are willing to spend some time understanding the basics, it will likely save you a lot of time and energ ...
