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

When looking at the equity and drawdown charts, some interesting observa- tions can be made. It’s obvious that the strategy has ...

shares traded, and the more shares traded, the larger the profit and loss potential in any individual trade. Most likely, we nee ...

through all the elaborate steps of testing and analysis. I know it can be tempting to go ahead and trade them anyway, as a sort ...

market, for a total of 60 symacs, which is the maximum our spreadsheet can handle. In this test, we apply the relative-strength ...

CHAPTER 28 Combined Money Market Strategies 361 FIGURE 28.10 Strategy 7 equity curve. FIGURE 28.11 Strategy 7 drawdown curve. ...

tom. Again, this is most likely a consequence of the current bear market and the fact that none of the systems forming the strat ...

both the Harris 3L-R pattern variation and the expert exits system, and the trail- ing-stop version of the Harris 3L-R pattern v ...

Moving on to the last of our filters, the rotation, we start by testing it on both groups of stocks, together with the trailing- ...

surpassing 15 percent on the way. But as soon as the bear market grabs hold of it, the results are less tantalizing. Maybe the t ...

(Because of the compounding effect, making the same money over half the time requires an average annual return for the shorter t ...

For the last two strategies I used two filters working parallel to each other, so that either one of them can open up a trading ...

cent of your equity at all times. The more money you need to tie up to reach a cer- tain return, the riskier the strategy, becau ...

STRATEGY 12
Long-term filters: Either the relative-strength bands or the rotation, work- ing independently of one another
Sh ...

has taken its toll on all the systems, as with all the strategies tested on the NAS- DAQ stocks, it seems as if the volatility o ...

To take $1,000,000 to $3,024,987 over 9.58 years, which is the exact length of the testing period, we need a constant compounded ...

For example, if you lose 10 percent of your capital one period, you will need to make 11.1 percent the next just to break even, ...

Other than that, rolling time-window analysis can come in handy when com- paring the performance of different strategies over se ...

The Counterpunch Stock System It’s important to remember that just because you have taken a system through all the elaborate ste ...

Originally featured in November 2002, this countertrend system looks for long positions when everyone else is selling short and ...

This system trades both sides of the market the same way, thus short trades made during a prolonged uptrend will probably not fa ...