Graybox Trading , Trader's Mindset
It is difficult to imagine a singular rules-based trading system that can accurately capture what expert level discretionary traders do because the expert trader is primarily forward thinking and speculating. Yet, even the expert discretionary trader faces two significant problems. The first problem is that even if one achieves a high accuracy in speculation, it […]
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Data only makes sense, only has meaning, when it is understood in relation to something else. Four common forms of making sense of data are: percent change, normalization, standardization, and relative ranking. These forms are very useful for building trading systems, and many machine learning techniques do not work well unless the data has been […]
Continue readingMy opinion on trading size… revised Recently, trading psychologist Dr. Steenbarger, in a post at SMB Capital’s blog, recommended that traders think about scaling out, that is diversifying and adding more trade setups, instead of sizing up their best trades. On reflection, I was doing well on my TopStepTrader combine until I took every trade […]
Continue readingThe futures day trader may naturally want to know: what markets are offering the best opportunities? One option is to look at the daily range in dollars and total volume of the popular futures contracts. Another option is to look at the markets that the best performing trading systems are trading well. Striker Securities and […]
Continue readingThe traditional way to backtest or develop strategies is to take a very long history and run your rules over that history. The objective is to find rules that produce stable or consistent returns. However, I have recently been experimenting with another technique for developing intraday strategies where I load from only a single to […]
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