In my 10+ years’ full-time trading career, I have found very few tools and tactics that would get my attention so deeply as Market Internals.In 2014, I spent about 6 months in a row with this unique traders tool, exploring its possibilities every single day, searching for new and creative … [Read more...]
System Parameter Permutation – a better alternative?
By Dave Walton - Statistrade.comWhen I wrote my Wagner Award winning paper “Know your System! – Turning Data Mining from Bias to Benefit,” I had two goals in mind:Introduce a new method to reasonably estimate the long-run expected performance of a trading system, and Provide a simple … [Read more...]
Sharpe Ratio – the right answer to the wrong question?
In my interview with Laurent Bernut in Episode 32, Laurent made the statement:[Tweet "The Sharpe Ratio is the right mathematical answer to the wrong question"]A number of listeners asked what he meant by this and he was glad to explain a little more, so here it is direct from … [Read more...]
Are your backtest results fooling you?
Have you ever started trading a strategy that performs well in the backtests but delivers a very different result when you begin trading it with real money?Could your backtest reports be fooling you by indicating a strategy is great but really only showing you part of the overall … [Read more...]
Blast Buy & Hold with this simple Bollinger Band strategy
In Episode 4 of the Better System Trader podcast, Nick Radge discusses some trading ideas he’s used to create profitable systems. He mentions a Bollinger Band idea which is also published in his book Unholy Grails. Nick says: the strategy that we did test and showed very promising results was an … [Read more...]
Do you know your Risk of Ruin?
Trading is a risky business and so many people who enter the trading world fail, losing large amounts of money in the process.Have you already lost a large sum of money or are you on the path to becoming another trading statistic? How do you know?Brent Penfold from IndexTrader.com.au, who has … [Read more...]