Trading Systems and Money Management : A Guide to Trading and Profiting in Any Market

Tables 15.2 and 15.3 show how the original system performed on the long and the short side, respectively. As you can see, the sy ...

it, but most important numbers are a little on the low side. But is it really worth trading it from both sides for the downside ...

survive the typical amount of noise in a market. Because you have no idea how much leeway each specific trade will need, the bes ...

more wiggle room at the beginning of the trade, but less at the later stages of a winning trade. Reason two is to increase the n ...

its trades are more similar looking than those trades generated by the original stop- loss version of the system. Overall, it’s ...

our initial assumptions and the findings from Table 15.5. However, as opposed to Table 15.4 in relation to Table 15.1, Table 15. ...

If EntryPrice > 0 Then Begin If MarketPosition = 1 Then Begin If TrailingStop = True Then Begin Top = MaxList(Top, High); Exi ...

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CHAPTER 16 Evaluating System Performance Before we move on to Part 3, let’s make a few individual observations for all the syste ...

so without letting the total time spent in a trade increase to a point where we limit our diversification possibilities by being ...

ting rid of several of the original rules and input variables. With fewer variables tested on more markets, the end versions of ...

system was to make it more aggressive than it was originally. More often than not, when testing an old system on new data, the “ ...

rules or calculations. Clearly, many of these systems have more rules than that. I still stand by that rule of thumb, although I ...

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PART THREE Stops, Filters, and Exits In this part of the book, we will look at various ways of adding stops and exits to our ent ...

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Chapter Distribution of Trades Idon’t know how many articles and seminars I have read and listened to that stressed the importan ...

FIGURE 17.1 Distribution of trades before use of stop loss. FIGURE 17.2 Distribution of trades after use of stop loss. 194 ...

it for all trades comes out to 2.94, which is considerably less than the 3.31 units from Figure 17.2, which made it so easy to b ...

For these particular charts, all trades were generated using Excel’s random- number generator, and there is no way to tell exact ...