Knowledge Centre

short term trading on the ASX

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 […]

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Psychology - A Common Theme

Psychology – A Common Theme

Of all the emails we receive, a common theme emerges: “It is hard to stick with the same strategy during drawdowns, due to the fact that the market always seems to be tanking whenever I decide to trade again.” – Andy N. “My biggest challenge is sticking to a strategy when it is not performing […]

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think like a pro golfer

Think Like A Pro Golfer

Think like a Pro Golfer – There are many similarities between trading and golf psychology. As The Masters finished this week, I thought it appropriate to reflect on the thoughts of one of the games top players; Justin Rose. Rose is currently ranked #8 in the world and has amassed career earnings of over US$30,000,000 […]

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santa

What Say You Santa?

Twice a year seasonal influences become the hot topic of conversation across social media; Sell in May and the Santa Claus rally. Let’s take a look at a few stats on the monthly ups and downs throughout the year and see where December fits in. For this simple test we buy on the first trading […]

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How To Create A High Winning Percentage Strategy

Last week we highlighted the Oops! pattern which appeared in Larry Williams’ popular book, ‘Long Term Secrets To Short Term Trading’. One of the reasons why the book was so popular is because many of the patterns and setups shown all had extremely high win rates, which is exactly what retail traders want, or think, […]

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The Oops! Pattern – In Sample / Out of Sample

The terms In Sample and Out of Sample refer to a technique for backtesting trading strategies 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, I was always taught to use three. Here’s how it […]

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Review and assess your trading strategies

Review and Assess Your Trading Strategies

Every so often we sit back and assess performance of various strategies, including the discretionary setups from our popular Playbook. When assessing these we look at the market conditions prevailing at the time, position of the setup within the trend, trade management and other measures. Our goal is to learn from these experiences and apply […]

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double 7's strategy

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 […]

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Survivorship Bias

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 […]

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How to Power Through Trading Losses

Nick Radge was interviewed by Aaron Fifield of Chat With Traders about dealing with losses, pushing through and becoming a successful trader. This is fantastic information for new traders and is a great reminder for intermediate to advanced and professional traders. You can listen to the interview here. Aaron said the lessons learnt in this […]

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