Tag Archives for " top "

Jan 21

Quick technique for achieving your goals

Trader's Mindset

I wanted to share a quick technique that you can use to better achieve your goals. First, keep in mind the SMART paradigm when defining your goals: Specific, Measurable, Attainable, Relevant, and Time Bound. Second, make a commitment to an accountability partner that you will achieve that goal. Third, define penalties that you will face […]

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Jan 19

Improving your system by learning from wins and losses

System Trading

In Murray A. Ruggiero’s “Cybernetic Trading Strategies”, a book that I think was ahead of its time, Ruggiero shared the concept for “nearest neighbor matching” for statistical pattern recognition. The concept was shared in the context of looking for market patterns and market analogs. However, I wanted to share a slight variation on this concept.¬†Instead […]

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Jan 15

Better RSI Entries

System Trading

Mean reversion systems, such as those based on RSI, suffer significant performance degradation when stop losses are applied for risk control. In previous posts, I shared how one could could create more powerful RSI systems by using adaptive periodicity and multi-state regime classifiers. The key idea for better RSI entries is that there may be […]

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Dec 28

My New Market Cognition Loop

Graybox Trading

One of my goals for 2019 is to create a better synthesis for my discretionary and quantitative trading. Discretionary loop: Attention Cognition Execution Systematic loop: Idea Program (Specialization) Test Graybox Loop (my new loop): Attention Cognition Program Rehearsal Execution

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Aug 04

The Triangle of Trading Success

Trader's Mindset

Novice traders often confuse the differentiating factors that can make the difference in success or failure. These traders often spend too much time focusing on skills, finding the perfect system or edge, and psychology. Yes, skill is important but it is only part of what I call the triangle of trading success. The triangle consist […]

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May 31

You Already Know What To Do

Trader's Mindset

I use a visioning exercise where I imagine how my trading at my best might be different then it is today. I find this technique to be an extremely powerful technique. The fact is that most traders who pursue their craft with dedication and seriousness know the steps they need to take to become more […]

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Mar 06

Simple Graybox Technique: Colorizing Background

Graybox Trading

A simple but effective technique for building your first graybox is to colorize the background based on whether you should be looking for short or long trades and/or based on identification of specific setups. A key benefit over simply using traditional indicators is that it eliminates the effort and tedium required to process multiple indicators. […]

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Aug 29

Simulation: Beyond Backtesting

Graybox Trading

One problem with traditional backtesting is that it relies on the presupposition that there are repeating predictive patterns in the market. In fact, most trading methodologies rely on this assumption. And ¬†yet, we know the disclaimer that past performance is not indicative of future results. And, yet backtesting largely assumes that the future will be […]

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