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Quants have started to realize that mechanical trading systems have certain severe drawbacks and are considering discretionary trading, which allows intelligent decision making based on both experience and quantitative analysis. In this blog I describe how I approach discretionary trading ...

The subject of optimization and curve-fitting has received a lot of attention by trading system developers, especially during the last 10 years. There is a lot of confusion about this subject and different views, some even conflicting. There are those who claim that optimization ...

There is a formula that every trader should know and understand. It relates the win fraction to the profit factor and payoff ratio. An understanding of this formula can provide useful guidance about the risks  in different trading timeframes. This useful ...

The idea that a retail trader, investor or even fund can employ automated trading systems and profit consistently without continuing adjustments or interventions based on fundamental conditions is dubious.

The removal of the Swiss franc peg to the euro last week by the Swiss National Bank caused huge losses to retail forex traders and brokers. It is unlikely that after this event retail forex trading will be the same ...

For the majority of retail speculators it is better losing it all at once and getting on with their life rather than losing their capital slowly over time and wasting many years to find out that profitable  high leverage forex ...

The ETF short-term trading system was started on September 2, 2014 and achieved a net absolute return of 7.6% for the year with a total return for SPY in the same period of 4.9%. The performance was based on a fixed percent ...

If there is a move to all-time highs in S&P 500 following the rally of the last two days, this will amount to a fifth V-bottom this year. All of these recoveries were created by dovish Fed statements near key ...

Three relative strength indicators are discussed, Wilder’s RSI, Cutler’s RSI and Harris’ RSI.

The optimum length of short-term price action patterns used to generate entry and exit signals depends on market conditions and cannot be determined in advance. It often pays to use a mix of patterns that respond to different market conditions. In short-term trading there ...