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Optimized Entry or Exit

Optimized Entry or Exit
Optimized entry (green vertical line on the chart below) or exit ( red vertical line on the chart below) is part of seasonal patterns. For example: the spread X–Y shows a strong seasonal up move in July with an optimized entry date on July 3 and an optimized exit date on July 28. This means “usually” the spread moves up between July 3 and July 28, but this is just based on statistical data of the ...
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Windfalls

Windfalls
Have you ever find $50 in your coat pocket or receive an unexpected gift from a relative? Perhaps you inadvertently overpaid your credit card, and now have an extra $100 that you didn't think you had? When most people receive a windfall, they feel they can spend it freely, as if it isn't "real" money. The same thing happens when recreational gamblers unexpectedly win a jackpot. They didn't expect ...
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Are you an efficient Trader?

Are you an efficient Trader?
Most traders start out with a dream. And usually part of that dream is that once you’re a successful trader you’ll have a lot more time for the things in life you enjoy spending time with. Your family, friends, hobbies, spend time in nature and start other business opportunities you’ve been dreaming of realizing. Besides making money, for many the main reason to start trading is actually that they...
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Do you think that what this guy wrote is true?

Do you think that what this guy wrote is true?
“You can get ahead of yourself in this game, and it’s dangerous to get cocky. But I’ve had times where for an hour I could do no wrong. I’m trading and 99 percent of the trades are good, they’re all for 30 or 50 contracts, and I’ll make 10 grand. Then I’ll overextend myself and maybe buy 10 or 15 contracts, fighting the trend just because I know prices have hit a support level. Then prices blow th...
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Jean1975
Mmhhh... Maybe this guy is telling the truth but i honestly doubt that a trader can be consistently successful without being able ... Read More
Sunday, 18 December 2016 15:24
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Looking at how the money supply affects trading in the markets.

Looking at how the money supply affects trading in the markets.
There are two important components of federal market activity which affect long- term economic activity and stock and commodity values; these are interest rates and money supply. A contracting money supply was one of the factors that caused the Great Depression of the 1930's. In the early 1980's most traders focused almost totally on the money supply figures, which would cause cash bonds and T-Bil...
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E-Mini Russel 2000 (TF) Multiplier Change

E-Mini Russel 2000 (TF) Multiplier Change
Something you should be aware of if you're trading the TF:  Starting today (December 5th) the E-Mini Russel 2000 (TF) has a tick value of USD 5.00 instead of USD 10.00 while the tick size stays the same. For more info see the  ICE FAQ . Happy Trading! Marco
Recent Comments
Jean1975
...As CME already did for other products it seems that they need to bring a lot of small fishes in the market. You know, the big b... Read More
Monday, 05 December 2016 11:21
Marco Mayer
Well yes, for sure it brings in more retail traders. But considering the TF is a considered a mini-future it makes sense. At least... Read More
Tuesday, 06 December 2016 02:45
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Simplicity of Trading

Simplicity of Trading
Trading requires that you take decisive action. Implementing a successful trading plan quite often requires that you make quick decisions when the right market conditions come into play. The more complicated you make your trading, the harder it becomes to make quick decisions. We all know it can be hard to make trading decisions when your money is on the line. Most of us have a natural desire to a...
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"Once I’ve achieved success as a trader, then what? I’ve heard that after a while trading can become boring."

"Once I’ve achieved success as a trader, then what? I’ve heard that after a while trading can become boring."
Question from a subscriber: " Once I’ve achieved success as a trader, then what? I’ve heard that after a while trading can become boring ." I know you would all like to have that problem, but I can vouch for its being true. I always have to find new ways to trade or I do become bored. However, I have never run out of ways to trade that remain exciting, at least for a fairly long time. After the ob...
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Recent Comments
Jean1975
For sure good trading is not exciting, because long lasting success comes from always doing the right small things day in and day ... Read More
Friday, 02 December 2016 07:14
Joe Ross
Great! You haven't reached that level yet, and maybe you never will. There's another item I haven't previously written about, but... Read More
Saturday, 03 December 2016 08:45
Jean1975
Wow... Outliving the own trading abilities looks like another gift of the Lord! It should be the great cycle of the life. I mean,... Read More
Sunday, 04 December 2016 09:46
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I Find Myself with an Attitude of Gratitude

I Find Myself with an Attitude of Gratitude
Dear Friends, Whenever this time of year rolls around, I find myself with an attitude of gratitude. This week we celebrated Thanksgiving Day. Although "Thanksgiving" is not celebrated here in Uruguay, many living here celebrated at various places around the country. There were at least fifty people at the gathering my wife and I went to. Trading and markets have been a major part of my life for al...
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Reaching Your Trading Goals

Reaching Your Trading Goals
As a trader, it's essential that you set specific goals. Trading is chaotic enough without trying to achieve unstructured goals that are difficult to manage and reach. Making profitable investments requires you to prepare carefully. You have to develop hypotheses regarding current market conditions. You have to devise ways of identifying setups and determine how and when to enter and exit the trad...
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Launching Ambush Signals

Launching Ambush Signals
I’m happy to tell you that today a new AlgoStrats service was launched:  Ambush Signals  for Futures. To find out more have a look at the following video presentation: Happy Trading! Marco
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Develop a Trading Plan

Develop a Trading Plan
The main message I want traders to understand is how important the disciplined execution of a well thought out trading plan is in today's markets. Nobody knows for sure what a given market will do next. Having a plan of attack will allow you to successfully cope with the uncertainty that is an inherent part of trading. I think it makes good common sense to have a well thought out plan of attack fo...
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As a percent of capital, should I go big or small?

As a percent of capital, should I go big or small?
Careful risk management is a key component you being able to trade at your best. Comfort level is really important when it comes to risk. You need to be comfortable in three areas: Emotional, Mental, and Financial. We could even add Physical to that list without having to make too great a stretch. If there is a real danger that you will lose large amounts of capital, or money that you just can't a...
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AlgoStrats:FX October Performance

AlgoStrats:FX October Performance
It’s been three months since AlgoStrats:FX launched so I guess it’s time for a more detailed update on what happened so far. Here’s the up-to-date equity curve of the live trading account: The summary is that we had a tough start and two months of slow, steady drawdown until things turned around nicely in October. Nothing unusual, no problem but hey…couldn’t the markets have given us a slightly ni...
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Overconfidence

Overconfidence
When traders are hot and seemingly cannot lose: When they make several trades that perform exceedingly well, there is a surge of human pride. They feel like the pitcher who strikes out the side for all nine innings of baseball. They feel invincible, brilliant, and master traders to say the least. When a trader feels like that he thinks he can do no wrong and make no mistakes. He comes to believe a...
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Time

Time
You pay a price for every profit you take with time and effort required to obtain it. Not to mention the years of experience upon which your knowledge and system methodology have been constructed. The slippage, and getting knocked out on a winning trade by one tick have a cumulative mental attrition that can only be offset by constant profits, vacations and other interests not market related. Time...
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Waiting for Confirmation? Don’t wait too long!

Waiting for Confirmation?  Don’t wait too long!
A popular concept in the world of trading, especially among technical traders and chartists is to wait for confirmation before entering a trade. This means you have a Signal, for example a price action pattern and now you wait for the markets to confirm that pattern before you enter. The idea of course is to filter out bad trades this way and to gain confidence before entering the trade. But that ...
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Recent Comments
Jean1975
Hello Marco, Great post, I couldn't agree more. Here are my 2 cents from my personal trading experience. Speaking about intraday... Read More
Thursday, 20 October 2016 07:31
Marco Mayer
Hi Jean, thanks for your comment! I totally agree with you, the smaller timeframe you're trading, the more noise you'll have. The... Read More
Thursday, 20 October 2016 10:07
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Is trading more of an art than a science?

Is trading more of an art than a science?
I believe trading is far more an art than a science. For one thing, if trading were a science, then we should all be able to enter the same trade at the same time, and exit at the same time getting identical results. We all know that just isn’t so. Yet if trading were scientific, we should be able to get identical results doing the same thing. I believe such expectation describes the “scientific m...
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New Video on Entry Signals

New Video on Entry Signals
Just wanted to let you know that I uploaded a new video to YouTube a couple of days ago. This time it's about why Entry Signals are important and one way to test an Entry Signal isolated from Exit Signals. If you like the video or my videos in general, and would like to see more of these in the future - please go ahead and like it on YouTube, leave a comment, add it to your playlist and share it o...
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Don't let your emotions influence your decisions in trading

Don't let your emotions influence your decisions in trading
Trading is nothing more than a long, random statistical run. An experienced trader knows that even if he is in a losing streak right now, as long as he sticks to his already approved trading plan, he will come out a winner in the long run. This is why becoming angry is pointless. In fact, it is worse than pointless, because heated emotions often lead to poor decisions in subsequent trades. In such...
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Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.