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Live Trading Scenario

Live Trading Scenario

Published September 1st, 2020 In a live trading scenario, is there ever a time when fundamentals or macro events would cause you to step in and override your systems? I would say that if I was to override a system it’s not because of any macro or any fundamental view, it’s because of an emotional […]

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To what extent is your systematic trading approach automated

To what extent is your systematic trading approach automated?

Published May 26th, 2020 To what extent is your systematic trading approach automated? To give an example, our U.S. mean reversion strategy is fully automated, we literally push a button and it will generate the buy and sell signals. I put my account balance in my software, and I push the button, and it will […]

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Survivorship Bias

Survivorship Bias

Published May 26th, 2020 Survivorship bias refers to stocks that have survived. So for example, Microsoft is in the S&P 500 these days, and it was in the S&P 500 back in 1998. Enron is not in the S&P 500 these days because it’s now bankrupt, but it was back in the S&P 500 back […]

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What defines a robust system?

What defines a robust system?

Published May 1st, 2020 I can’t stress this enough; You need to have a robust system. What is a robust system? A robust system is a trading system that has been validated, that works reasonably well over various markets and that the end user, the trader, can implement on an ongoing basis. The first question […]

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Why I don’t trade on the short side

Why I don’t trade on the short side?

Published May 26th, 2020 I only trade the Australian and U.S. markets on the long side. I don’t trade short. I use to trade short but I stopped in 2009. There’s a couple of reasons. First of all, I’ve never really come across a strategy I’m 100% happy with. I can find strategies that make […]

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Market Conditions

Market Conditions

Published May 26th, 2020 Are there certain market conditions where a mean reverting strategy may be more effective than other strategies? Absolutely, every strategy whether it be technical or even fundamental, will have periods of time where it works better than others. Every strategy goes in and out of sync with the market. Doesn’t matter […]

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What is a mean reversion system trading system?

Published March 25th, 2020 Mean Reversion Mean reversion is buying weakness, and selling strength. Warren Buffett is a mean reversion trader, essentially. He is buying value and waiting for those companies, or that value to be realised. There’s a number of reasons why someone would trade this type of strategy. First of all, the diversification. […]

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A systematic approach

A Systematic Approach to Trading

Published May 27th, 2020 Nick Radge what type of trader are you? What is your trading approach? I have an extensive background in technical analysis. I am a 100% systematic trader. I trade trend following systems for the majority of my funds and also a selection of mean reversion systems as well. It is 100% […]

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Validating Your Strategy

Validating Your Strategy.

Published April 23rd, 2020 How do you validate systems and ideas?  Our main software that we use these days is AmiBroker. I started using TradeStation back in the early 90’s. The problem with TradeStation was you could really only test single markets for the systems. You really couldn’t do any portfolio testing. AmiBroker allows you […]

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Debunking Trading Myths

Debunking Trading Myths

Published May 26th, 2020 Let’s debunk some trading myths. “Trends don’t last forever. If a stock becomes too popular it will reverse, leading to a sharp decline, from which you can lose a lot of money.” Response: What does that have to do with trend following? A fundamental investor or a value investor could be […]

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