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Trading Systems and Market Updates — money management algorithms

What is the Risk and Trading System Statistics of Buy and Hold?

Posted by David Bean on

When comparing different types of investments, we like to look at the numbers. We asked the question, "How do we compare buy and hold statistics to automated trading system statistics?" I made this video last week and then after I made the video I nearly fell out of my chair when Leon Cooperman of Omega Advisors admitted that "Billionaire investors didn't get rich by using index funds". He did a great job of making my point below that active management or short term trading is a better approach in the long term. Here is the link to the interview. We...

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Trading on the Last Day of Q1

Posted by David Bean on

We go over the latest trades in Q1 and the trading plan for Q2. You will get the updates this weekend if you have the 100K or One Million Dollar Portfolio as there are now 21 strategies in the 100K and One Million Dollar Portfolio. The updates will be shown on the website and include the transition. The 25K Portfolio and 50K Portfolios remain the same. The Special Offer for the 100K Annual Subscription through this weekend (expires Monday at noon) and includes 21 strategies for 12 months is here. VIX Swing is a new strategy listed on our website...

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Trading Choppy Stock Index Markets

Posted by David Bean on

Trading Choppy Stock Index Markets

One of the best ways to trade narrow ranging choppy markets is to counter trend trade the choppiest stock index with a lower daily dollar range and then trade a trend strategy on the stock index with the largest daily dollar ranges. Exhaust and Reverse is on five winners in a row after last weeks drawdown as the markets continue to chop after a large trend day. It has been many years since we have seen continued multiple sell off days. The E-mini S&P can be one of the trickiest markets to trade and when we have narrow ranges, you...

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Pessimism One

Posted by David Bean on

Pessimism One

We like to take advantage of high frequency trading equity curves with our Money Management Algorithms. Here are some examples. Tradestation & MultiCharts Example NinjaTrader Example From this example, we call our new strategy Pessimism One. The way it works is that it takes dual moving average crossover trades on 15 second charts by starting when the strategy is down $100. The high frequency nature of this strategy doesn't give the strategy many opportunities to ever be up or down $100 per contract. So when it is down by $100 then it has the opportunity to mean revert. Mean reversion...

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Algorithmic Trading Systems for Crude Oil

Posted by David Bean on

We have updated the Weekly Inventories Report and After Hours Trading Systems inputs for Crude Oil to include a MaxDailyEntries input to limit our daily risk. You can get the open code when you sign up for the membership site below: http://algorithmictradingsystems.com Automated trading systems are the best way to quantify your technical analysis. You can look at charts and provide interesting analysis, but do you backtest it? Is it at least historically profitable? We wouldn't recommend risking capital without a plan or discovering a quantifiable advantage in the market. This starts with strategy backtests.

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