Systematic Trading Archives

How to Trade During Takeovers

This stock trading question in relation to how to trade during takeovers comes from Phil M. who asks… “With regard to takeovers: (1) Do you EXIT when you first hear of a takeover or do you wait till the takeover is completed than you exit the position? (2) How are you alerted to takeovers?” These […]

Too Scared to Trade

Have you ever felt to scared to trade? This stock trading question comes from Gregory L. who asks… “My #1 challenge is ‘pulling the trigger’, i.e. executing the trade. I guess I am still damaged by the GFC losses.” Many novice investors narrow their stock pool by over-strategizing, i.e. trying to pick the right stock, […]

6 Steps to Start Stock Trading Successfully

So, you want to start trading the stock market but where do you begin? We all need to start somewhere, both from an educational standpoint and the actual ‘doing’ part. Unfortunately there are a myriad of choices and Monday Morning Quarterbacks willing to collect on the excited yet unsuspecting new trader. Back when I started […]

Is Trading Short Term In Australia Viable?

The strategy disclosed in our popular Earn A Second Income series was specifically designed to trade US equities, mainly because it offered a high level of trade frequency, which is an important element of profitability, and because US equities tend to have quite low commission rates. The sign of a robust strategy is one that […]

The Oops! Pattern – In Sample / Out of Sample

The terms In Sample and Out of Sample refer to a technique for backtesting trading strategies (which is extensively covered in our Trading System Mentor Course) where there is some kind of optimisation or data mining taking place, i.e. finding the ideal parameters to trade with. It’s common to use two sets of data, however, […]

Double 7’s Strategy

This simple double 7’s strategy was revealed in the book Short Term Strategies that Work: A Quantified Guide to Trading Stocks and ETFs, by Larry Connors and Cesar Alvarez. It’s a mean reversion strategy looking to buy dips and sell on strength and was initially designed for ETFs. In testing it has shown an extremely […]

Survivorship Bias

The Double 7’s Strategy article proved to be a very popular topic – thanks for all the feedback. In the article I stated, “…we’ll use historical constituents to remove survivorship bias” and this has created a few questions, namely what the heck does it mean? According to Wikipedia, “Survivorship Bias is the logical error of […]

DSesign a trading strategy to suit your personality

Create Your Own Trading Strategy

It’s hard to envisage or create your own trading strategy. As much as we’d like to wake one morning and be a better trader, taking your trading up a notch will take some effort and work, not unlike succeeding in any field. From experience, I find the best way to move forward is to question […]

Understanding How the Growth Portfolio Works

Understanding, Protecting And Growing Your Wealth By Investing Just 10 Minutes A Day FOR ACTIVE INVESTORS AND SMSF TRUSTEES In just a few minutes I’ll show you and understanding of why you don’t need to be at the mercy of the economic climate… don’t need to lose a ton of money every time we go […]

Computerised Trading Systems for Beginners

New traders are often enticed to start trading using computerised trading systems or, as they’re sometimes known, “black box” systems. These programs tend to be sold by high pressure sales companies that make the world of trading and profits sound remarkably simple and low risk – buy the software then each day push the green […]