Knowledge Centre

Measuring Trade Efficiency

Published May 10th, 2021 Can your current trading strategy be enhanced without making radical changes? To understand where your strategy may be lacking, or where it could be improved, we need to break down the trades to view any developing inefficiencies. The following tools can be used for any style of trading or any instrument. […]

Which Trading Strategy is Right for Me?

Published May 4th, 2021 Each week we receive many emails from traders and investors asking which trading strategy is the right one for them. That’s something we will never give you advice on. We’re not licensed to do so, nor do we have the appropriate background information on you to help with that decision. We […]

Strategies that will continue to profit

Published April 27th, 2021 Are you keen to gain some knowledge on strategies that will continue to profit? In last week’s article we discussed why some strategies are prone to failure in the future. You can read that article HERE. We defined robustness, which refers to the ability of the strategy to perform into the future. […]

Be Wary Of Single Market Systems

Published April 22nd, 2021 Have you come across a strategy that trades just one market? That’s a big red flag, in my opinion. Why? 1. Data mining 2. It’s unlikely to be robust. Data mining is the process of extracting hidden patterns from extremely large sets of data. The overall goal is to extract information […]

5-Step Solution to Maximise Your Profits

Published April 12th, 2021 Would you like a 5-step solution to maximise your profits? This article is a snippet from The Trading System Mentor Course. There are many different ways to grow an account. Using a linear method such as Fixed Fractional position sizing will do it, albeit slowly and surely. The key to growing the […]

Momentum with 52-Week High?

Published March 29th, 2021 We recently received the following question from Michael G. “Have you ever back tested the momo (weekly) bull strategy- top 5 or ten stocks closest to 52 week high and then reload every week?” I haven’t tested this idea but let’s do it now. Here’s how we’ll start. Calculate the distance […]

The Importance of Regime Filters – Part 2

Published March 15th, 2021 Last week we discussed Regime Filters and tested their significance on two longer-term trend style strategies. If you missed that, read about it HERE. The conclusion was that a regime filter can reduce drawdown by a reasonable amount, yet not overly impact returns. For the record, every longer-term strategy I trade, and […]

The Importance of Regime Filters – Part 1

Published March 13th, 2021 Today we discuss regime filters and what impact they have on certain styles of trading systems. A regime filter, or index filter as it’s sometimes known, defines the trend of the broader market. Some strategies benefit from being aligned to that same trend. i.e. be long equities when the S&P 500 […]

Stock Market Terminology – Definitions and Usage

Published April 16th, 2021 Stock market terminology can be confusing, a language all its own. We’ve listed below all the stock market definitions we can think of but if we’ve missed one be sure to let us know. Stock market terminology – A to C ABC Elliot wave terminology for a three-wave countertrend price movement. […]

Recency Bias

Published February 16th, 2021 “The great strategy you can’t stick with is obviously vastly inferior to the very good strategy you can stick with.” That’s a great quote. Why? Too often aspiring traders look for the greatest strategy rather than looking for a reasonably good one and applying it for the long term. But here’s […]