Thursday, October 19, 2017

New testimonial

Recently I caught up with Craig, an experienced London-based trader who I have been working with for a couple of years, together with his trading partner Aaron, a for a day as part of the mentoring programme.

We had an exhaustive (and enjoyable!) session covering many topics, including further ideas about developing their edge, running multiple systems, correlation and risk.

Saturday, October 14, 2017

Risk and the 1987 stock market crash

This coming week marks the 30th anniversary of the 1987 stock market crash. On 'Black Monday', the world's equity markets were in chaos.

Following this, circuit breakers were introduced in an attempt to prevent such dramatic one-day moves. These were further strengthened following the May 2010 'Flash Crash'.

Thursday, September 14, 2017

An example in trade management - the trailing stop

When trading using a clearly defined set of rules, it can easily become frustrating for an inexperienced trader to get stopped out of a position, only for price to then reverse and start moving back in the direction of your trade.

Some see that as a weakness of their method. Yet I, and many other traders who religiously follow their rules (be they automated or not), see that as a strength.