facebook  Twitter youtube  blogger

Manual Backtesting Pitfalls

Manual Backtesting Pitfalls
If you don’t want to learn how to backtest automatically right now but still want to profit from backtesting, you got to do it manually. That’s how I started too many years ago. I still remember sitting there with printed charts and writing down trade results on a separate sheet of paper. Now there are some pitfalls you better know about when doing manual backtests and that’s what this weeks video...
Continue reading
972 Hits
0 Comments

Ego-less Trading

Ego-less Trading
The majority of traders might think it would be impossible to trade in an "ego-less state", but this is not the case. To trade in an ego-less state means simply to not let the ego and emotions get involved. While trading in an ego-less state, winning or losing on a single trade become almost meaningless when the focus lies only on the whole picture. This is the soul of ego-less trading. Trading wi...
Continue reading
1073 Hits
0 Comments

The Best Trader in the World

The Best Trader in the World
If you had to describe the best trader in the world, who would that person be? What qualities would he have? Take a moment to envision him. This is important, because this is the person you want to be, so you need to have an exact picture of him and what his qualities are. The answer is that he is someone whose trading is somehow “complete”. Someone who is controlling his trading at all times; som...
Continue reading
1216 Hits
0 Comments

Letter from Joe Ross

Letter from Joe Ross
  Dear Traders, It has been quite a while since I wrote one of these letters to all who are on our list. It is being emailed to you, and will also be posted on my blog . I’ve been trading, but am also involved in erecting affordable housing in Uruguay. I haven’t had a lot of time to write, other than keeping up with the regular free weekly Chart Scan teaching letter. I’ve had some things on m...
Continue reading
792 Hits
0 Comments

FOREX VS. FUTURES

FOREX VS. FUTURES
What’s better to trade the currency markets? Trading Futures or Forex? This is the question I try to answer in my new video, where I briefly discuss the major differences between trading Futures and Forex from my perspective. At the end though there’s no “right” answer to that question, as it really depends on your needs.
1052 Hits
0 Comments

AlgoStrats.com is online!

AlgoStrats.com is online!
I'm happy to tell you that  AlgoStrats.com , my new website focused on Systematic Trading is now online! Initially I wanted to launch the website together with my new product AlgoStrats:FX, but due to the UK's EU referendum on June 23rd I decided to delay the launch into July. Still I wanted to bring the new site online as planned, so go ahead, check it out and send me some fee...
Continue reading
958 Hits
0 Comments

Controlling Emotions

Controlling Emotions
Winning traders cannot afford to be influenced by their emotions. The nature of trading demands an objective, logical approach. If you experience extreme excitement after a win and extreme disappointment after a loss, you will be living on an emotional roller coaster: up and down, up and down. Many beginning traders have head knowledge of what it means to control their emotions. They can imagine a...
Continue reading
1143 Hits
0 Comments

Don't Trade Your P&L, Trade The Market!

Don't Trade Your P&L, Trade The Market!
I just posted another video on our YouTube channel about  another very common trading mistake, and that's trading your P&L instead of the actual market. While there are many variations of this, I guess I covered some of the most common ones that I've done myself again and again when I started trading. Go check it out and let me know if you have any questions or comments!
1041 Hits
0 Comments

Fear of missing “the big one”

Fear of missing “the big one”
The best way to handle that kind of fear is walk away from the situation. Get up, and walk away from the computer and any news you may be watching. Remove yourself from whatever it is that triggered the fear. Do anything that will take you out of the fear/panic mode. Don’t sit down to trade again, and don’t return to the markets until you have managed to achieve some emotional control over your fe...
Continue reading
917 Hits
0 Comments

Important Alert

Important Alert
  Dear Investor,   On 23 June 2016, the United Kingdom EU Referendum (“Brexit” vote) will take place, creating potential for heightened market movements, including the real possibility of significant price gaps and periods of exaggerated illiquidity. It is important that you be aware of the potential risk of this upcoming event, so that you can be both prepared and positioned properly as...
Continue reading
941 Hits
0 Comments

Becoming a Perfect Trader

Becoming a Perfect Trader
As traders we have a strong need to want complete control over the outcome of a trade. We want to believe that if we analyze the markets long enough, we'll have perfect knowledge and we can trade to perfection. But such desire leads to wrong assumptions that can do us more harm than good. Assuming we must have control restricts our actions and reactions, and the result can be unnecessary stress. W...
Continue reading
Recent comment in this post
Jean1975
In trading you can only control yourself and the risk amount which you a willing to take. Outcome cannot be controlled. Better to ... Read More
Thursday, 26 May 2016 07:53
1350 Hits
1 Comment

Walk-Forward Testing

Walk-Forward Testing
Walk-forward testing is the first real step in testing any system on live data. A trader should be somewhat confident that the system or method can produce results in line with the hypothetical results received from back testing. At this stage of testing, it’s important to watch a trading system or method run over live data for a period of weeks or months until a large, statistically valid univers...
Continue reading
1069 Hits
0 Comments

Trading Error: Stop Trading At The Worst Time...

Trading Error: Stop Trading At The Worst Time...
I just wanted to let you know about a new video that I uploaded to YouTube about one of the most common trading mistakes out there: To Stop Trading/Following your method/system/yourself at the worst time possible. This is something I see over and over again especially among beginning traders. You won't believe how often I've trapped into this myself during my first years of trading! Happy Trading!...
Continue reading
1101 Hits
0 Comments

After closing out a trade

After closing out a trade
Once you have closed your position, you should record everything about the trade. Write down where you wanted to enter the trade, what you expected out of the trade, and what you actually did get out of the trade. Make sure to include notes that will help you learn from the trade, reasoning what actually took place once you entered the trade. Explain why the trade was a winner or a loser. If you k...
Continue reading
1140 Hits
0 Comments

Thoughts about being an option buyer

Thoughts about being an option buyer
An option buyer has the odds strongly stacked against him. What most option buyers don't realize is that in order for them to make money, they must be right in three areas: He has to be right about market direction He has to be right about the degree of market direction He has to know when the market move will move in a certain direction That is definitely worse than being a trader in the underlyi...
Continue reading
1121 Hits
0 Comments

How much to risk per Trade

How much to risk per Trade
One of the questions every trader has to think about at some point is, how much of my account should I risk per trade? A percentage? If so, what percentage? I’d love to have the right answer in my pocket for you, like "exactly 1.25% per trade/market and no more than 5% at the same time," but unfortunately, I don’t. Again I know you don’t want to waste too much time with this bo...
Continue reading
Recent Comments
Jean1975
Great post. In my humble opinion carefully managing risk with a proper position sizing and shutting down quickly the losing trades... Read More
Thursday, 12 May 2016 15:48
Marco Mayer
Thanks Jean! Unfortunately posts and videos about anything related to risk-/money-management aren't the most popular ones. So I'... Read More
Friday, 13 May 2016 02:28
1295 Hits
2 Comments

Multi-Leg Spreads

Multi-Leg Spreads
Not many traders are familiar with futures spread trading. Even fewer traders understand multi-leg spreads. However, trading these types of spreads is as easy as trading an outright futures contract. Below is a 3-leg butterfly spread in Lean Hogs that we recently closed out in Traders Notebook : short one contract in June and in August, 2016, and long 2 contracts in July, 2016. The blue line on th...
Continue reading
2048 Hits
0 Comments

I'm still alive--woo woo

I'm still alive--woo woo
Really, I'm still kicking. I've been busy in the deep South--South America, that is. But just so you know, I look at or trade the markets every day. It's simply a long time habit. The markets tell me what's going on in the world. In addition to trading, I'm involved in building affordable housing, and working with CAIF, which is an organization that helps the poor. Next time I feel like blogging, ...
Continue reading
896 Hits
0 Comments

Bollinger Bands in a Nutshell

Bollinger Bands in a Nutshell
Markets move between low volatility trading range moves and high volatility trend moves. One of the best ways to see this taking place is with the Bollinger Bands. When a market makes an extremely narrow range move the Bollinger Bands will noticeably narrow together. When the bands narrow down it shows decreasing to low volatility condition on prices. Of course, a low volatility market forecasts a...
Continue reading
1190 Hits
0 Comments

New Q&A Video Online

New Q&A Video Online
I just uploaded Episode 3 of my Questions & Answers Series to YouTube. It covers questions on the usefulness of demo-trading and on trading 123 formations. In the last part I talk about why I developed my own python-based backtesting platform which is probably only interesting for those of you who're hardcore into system-development. So if you're not, just stop there ;)
837 Hits
0 Comments

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.