The concept of trend following is based on the belief that security prices move in upwards or downward trends over time and that the surest way to profit from those moves is to attempt to ride those trends. Despite some claims that trend following is a strategy for nonconformists, trend following is in fact hugely popular, particularly among […]
The new course Hedge Fund Trading Systems Part Two is now open for enrolment. This course contains five new trading systems that I have developed. Each system has been run on robust historical data and shows a consistent, profitable edge in back-testing. The rules for each system are fully explained and the Amibroker source code […]
Whatever your opinions are about the concept of back-testing, there are few better ways to build a trading system than through the back-testing of historical data. Back-testing allows us to answer critical questions like ‘how many positions should I hold in a portfolio?’, ‘how much risk should I take?’ or ‘how effective was this strategy in the past?’
Unfortunately trading systems often get discarded early on after a couple of poor back-test results. Sometimes it is better to improve an existing system than to start afresh with something new. In this article I look at 21 ways you might be able to improve on your existing trading system:
My goal is to bring new trading strategies to the table every month. Last month, I brought you details about building a trading robot with Excel and Interactive Brokers and this month I’m back with another excellent strategy from Peter Titus called The Big Volatility Short.
In this article I present a simple and quick trading strategy for shorting leveraged ETFs. Using historical data from Norgate and the back-testing program from Amibroker I reveal a potentially profitable strategy that could benefit from further development.
It has long been established that the Kelly Formula provides a powerful equation for calculating the optimum level of risk with which to place a bet in a probabilistic type game. A game like blackjack or sports betting.
The benefits of creating an automated trading system are huge. With a profitable trading robot you can spend more time doing what you enjoy and less time watching screens. You can trade quicker, smarter and without emotion.
Conventional wisdom suggests that a reverse stock split is generally bad for a company’s stock. That’s because reverse splits are usually undertaken when a stock is in danger of being delisted. But is there any actual evidence that reverse stock splits lead to bad investment returns? And if there is, might you be able to make money from shorting reverse […]
To succeed in the financial markets you need to have some kind of system in place. Trading systems protect the trader from his ‘inner chimp‘ – the limbic side of the brain that relies heavily on emotions and gut instinct. The inner chimp is quick to react and respond to incoming dangers. It often makes snap […]