Saturday, February 17, 2018

Some of my beliefs about backtesting

When it comes to trading, I like to think differently. I'm not afraid of being a bit of a heretic when it comes to thinking about the markets. While I adopt and use 'classical' trend following and breakout principles, I also like to think for myself, outside the box.

As an example, lots of traders swear by running backtests and tuning their trading models based on the results of their testing and analysis. Certainly, in some cases with getting to grips with a basic concept, backtesting can be of some use.

Saturday, February 10, 2018

A tale of two setups

Rather than talk about the recent market shenanigans, the chart of the Dow covering the last few months offer us a good chance to compare a low volatility setup against a higher volatility setup.

Sunday, January 21, 2018

Do you have what it takes?

Last month I had the pleasure of catching up with a trader I have known for a few years now, and mentored for a while. We talked for a couple of hours about trading in general, as well as how he has continued to develop himself as a trader. He is now trading full-time and has developed his own method (more of a swing-based style) which he is trading profitably.

Saturday, January 20, 2018

The Golden Rule

I would be considered by many to be a loser at trading. This is on the basis that I have far more losing trades than winners. And, if that metric alone determined whether someone is profitable or not, then they would be right.

But fortunately, they are not. Because I use what Van Tharp calls 'The Golden Rule'. It has been around for more than 200 years. Trend followers swear by it. If you can use it, you can make money. What is it?