A small dose of reality… Recently, I have been experimenting with trading with very tight risk limits. I am doing a combine in both TopStepTrader and trying out for an account at OneUp Trader, as well (for more information about these firms see my article: Prop Funding at my other blog). While I just started […]
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In my recent exploratory analysis and back testing, I have started to employ the formal process of capturing the entire change history of my work. Programmers have long made use of the concept of “version control” or “revision control” which is the formal process of saving all the modifications of a program’s source code to […]
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Traders are always looking for what the secret sauce to achieving higher levels of performance. I’ve found that the secret sauce is creativity. But, it must be cultivated, nurtured in a systematic way, and backed by rigorous work.
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We will explore a simple concept in trading: scale up or scale out. Scaling up tends to be the preferred technique for the discretionary day trader. The idea is to get really good at trading one market and then increase size. Futures markets are ideal for scaling up. On the other hand, scale out tends […]
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The keys to successful trading often seem mysterious. One reason that trading might seem difficult is because frankly there are many factors that can impact the markets. The factors that influence the market are dynamic and in a constant state of flux with different factors tending to dominate at different wavelengths and in different time frames. […]
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The idea of “degrees of creative freedom” has bubbled up and started to percolate my consciousness recently. And, the concept is that the more degrees of creative freedom that a system enables then the greater the wealth that is possible to be created–where wealth is the expression of valuable ideas. And, system in this case doesn’t refer to […]
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A recent Google study (or read Quartz’s summary here) on AI agents showed that AI agents acted aggressively in environments where competition was encouraged but collaborated when the environment fostered collaboration. Trading is ultimately competitive. As individual traders, our primary limiting factor tends to be a lack of capital. There are two basic risks for sharing ideas. The […]
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Phil Ivey is one of the great poker players. As cited by Wikipedia, he’s regarded by many as the best all-around poker player in the world. But, some may not know that his story is one of perseverance. He blew out multiples of times as a teenager trying to make it as a pro. I think I […]
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A Misguided Idea That Might Make it Difficult to Develop Very Profitable Systems I want to share a popular and misguided idea that might make it difficult to develop very profitable systems. However, in order to understand why the idea is misguided; we first have to understand why and how it makes sense and the […]
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