Stock Trading Questions Ask the Pro Archives

Combining Trading Strategies to Diversify Your Portfolio

Combining Trading Strategies to Diversify Your Portfolio has sparked a question from one of our subscribers. A recent question from Julie B… Have you run a test where you allocate equal amounts to [turnkey strategies]? If so, can you share the resulting data? Long time readers will be aware that I’m an avid proponent of […]

How to Trade Profitably

I like to show people how to trade profitably. Many years ago I travelled around Australia running a seminar showing people how to manage their risk appropriately. The videos for this seminar are titled The Profitable Trader and are available here. In the seminar I suggest that the 2% rule is not appropriate for everybody. […]

Learn How to Trade the Stock Market

Want to learn how to trade the stock market? If we use an analogy; teaching my daughter how to drive. I had hair before I started teaching her to drive. Now I have none. When you teach a teenager how to drive, the quantitative rules are pretty straight forward. Put your foot on the accelerator […]

Trading the Trends in the Stock Market

Trends can’t not exist. The economy is always shifting back or forth, and human sentiment which is ultimately the driver of the market, is always shifting backwards and forwards –and therefore trends will always occur. I had a run in with a very major Australian educator whom in 2009 came out and basically said in […]

I’m not a Stock Picker

I’m not a stock picker. To give you an idea, over the last six or seven years my major trend following strategy here in Australia that trades long only equities, my win rate is about 49.6%. During that time, my compounded annualised return is about 18% compared to the market 2.7%. That’s only getting it […]

Trend Following System

A trend following system has got rules. Simple does work. It really does work. People tend to look for complexity. People tend go for a strategy that has a higher winning percentage. But that’s wrong. Simplicity works best because simplicity is robust and it works exceptionally well. In my book Unholy Grails, towards the end […]

How I became a Professional trader

So how did I become a Professional Trader? I was unwittingly introduced to trend following. A friend worked for a big, well established stock broking firm, and he was looking for a clerk. So it ticked all my boxes; I got to catch a train to work, carry a briefcase, and wear a suit and […]

Investing for your Retirement

Do you have a retirement fund? For our retirement Trish and I have used a trend following strategy called the Growth Portfolio since 2006 and we trade it within our SMSF (Self Managed Super Fund). The Growth Portfolio accounts for about 85% of the value of our retirement account and we have accumulated a retirement […]

Amibroker for Building and Testing Trading Systems

Craig Fisher and I work together to develop systems using Amibroker. Craig is the best coder I’ve come across and he is a great mentor to our Trading System Mentor Course students. So why AmiBroker? Amibroker is inexpensive, it can do anything you want; it can automate processes, it can do explorations, it can do […]

How do you know if your trading strategy is no longer working?

Is your Trading Strategy Working? Let’s say you’ve got a long only trend following system. A long only trend following system is not going to do particularly well in a sideways market or a downwards market. That’s a fact of life. It is designed specifically to profit extensively when the market is trending up. Again, […]