Options And Active Day Trading Specialists – Netpicks

[...] of system is best for your account size, etc.  But how do you dig into a strategy’s equity curve to find out more about this system? How could you use the equity curve to find out where you [...]

[...] all lets revisit, what is a drawdown? A drawdown is the dip between new equity highs in your equity curve, it’s as simple as that. So, by definition, you can see a trader will spend most of his/ [...]

[...] What I would like to discuss today is where we (you) are on the Equity Curve in regard to each of the portfolios you are trading. I believe it is extremely important to [...]

[...] but unfortunately didn’t give it the respect I should have. It is called the Underwater Equity Curve. Here is a definition of the chart, “The Underwater Equity curve, popularized by Jack Schwager, [...]

[...] to proceed, become the algorithm. The post Become the Algorithm appeared first on Your Online Trading Concierge Desk. [...]

[...] . Level I – RP Level I – MP The post What is a Trade Through appeared first on Your Online Trading Concierge Desk. [...]

[...] -09 when they should have been getting in. The post Rolling CARs appeared first on Your Online Trading Concierge Desk. [...]

[...] The post L1 – AM Monthly Profit appeared first on Your Online Trading Concierge Desk. [...]

[...] they draw on so many more data points than trailing returns, can reveal times when the trading system is in trouble. The Rolling CAR charts do not install with Amibroker so I had to get them from [...]

[...] happening? I didn’t expect this.” It’s completely unreasonable to expect a trading system to make money each and every day of each and every month. Things simply don’t go UP, [...]

[...] basically flat. In summary, you need to be aware of all the little nooks and crannies of your trading system for the more you know about your system, the easier it will be to stick through the tough [...]

[...] a traditional equity curve plots the closing equity value, or account balance, for a trading system bar-by-bar in relation to time, the underwater equity curve, focuses on losses bar-by- [...]

[...] it might be an interesting post to hear from a member as to how they found their way to algorithmic trading, and I agreed. I had my first taste of trading while in college taking a finance course.  [...]

[...] wrong!) There is chart I have perused many times during the process of learning all about algorithmic trading but unfortunately didn’t give it the respect I should have. It is called the Underwater [...]

[...] ; drawdown but live through drawdowns –  plural. And I’m not talking about the MAX drawdown, I’m talking about the drawdowns you will be in most of your trading career. First of [...]

[...] as well).  My conclusion was that they hurt the results of the vast majority (almost all) trading systems, or resulted in over-fitting of stop parameters.  So, I decided not to use them, and not to [...]

[...] to things don’t go UP forever: things don’t go DOWN forever either. Trading systems are very cyclical, they make money, then they lose money, then they make money etc. It [...]

[...] provided different algorithms to professional money managers to build a portfolio of trading systems.  Each system had over 10 years of back-tested data.  Their systems gave entry and exit [...]

[...] Frequency Trading (HFT)? Here is how Wikipedia explains it, “High-frequency trading is quantitative trading that is characterized by short portfolio holding periods. All portfolio-allocation [...]

[...] , “The teacher appears when the student is ready.” This clas s introduced me to Quantitative Trading. Trading that did not involve any kind of guessing and was your pure “Plan your [...]

[...] of the best, optimized them, tweaked them to make them better and put them together into the QiT portfolios. There is a lot more to this story, how I took algorithms and made them my own but that will [...]

[...] by acting emotionally when in DD. 2. Measure your drawdown. Don’t we all look at the drawdown stats from the evaluator sheets and say, ya I can live with that, seemingly giving them their due. [...]

[...] I was paying heed to drawdowns when I acknowledged the size and length of the Maximum Drawdown. Up to now I assumed the MDD and MDD duration were the only numbers over which I had [...]