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

Chapter Hybrid System No. 1 Originally presented in September 2000, this is a short-term hybrid system that falls somewhere betw ...

Exit with a trailing stop if the market falls below the lowest low of the last nine days. Exit with a loss if the market is belo ...

of the 25 stocks in the test portfolio were not listed until very recently (such as Amazon.com, which didn’t start contributing ...

ber of shorter trades, but also an increasing number of losing trades, which would deteriorate performance somewhat. As it turne ...

aggressive the system. The most important thing to notice is a risk–reward ratio for the entire portfolio above one, which means ...

Unfortunately, the short side did not produce good enough results to warrant trading without any other types of adjustments, suc ...

{Leave these variables alone.} RetraceDistance(0), LongEntryLevel(0), ShortEntryLevel(0); {Code for normalizing the number of co ...

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CHAPTER 9 RS System No. 1 Originally presented in October 2000, this is a short-term relative strength (RS) system that compares ...

Risk 0.5 percent of available equity per trade. At the time of entry, calculate the number of shares to buy as 0.005 multiplied ...

Revising the Research and Modifying the System Table 9.1 shows the results produced by the original system. This is a pretty goo ...

also increased to about 13 days. The bad news is that risk–return ratio decreased a little, as did the number of profitable mark ...

enter into a trade. Unfortunately, however, most likely this will also increase the time spent in the market and the number of m ...

the short side. Figure 9.1 shows a sample trade in Veritas, using this version of the system. Before we move on, it’s also worth ...

AllowLong(True), AllowShort(False), StrengthLookback(20), StrengthModifier(-5), {Leave these variables alone.} RelStrength(1), A ...

If EntryPrice > 0 and LongPercStrength Crosses above EntryStrength Then ExitShort ("S-Exit") Next Bar at Market; {Code for in ...

Chapter Meander System V.1.0 Originally presented in January/February 2001, this system is based on the mean- der indicator, whi ...

Original Rules Enter long with a limit order if the market trades below the lower two standard deviation meander boundary. Risk ...

the market—24 percent on average per stock, compared to 100 percent per stock for a buy-and-hold strategy. Note also that both t ...

As Table 10.2 shows, this made a huge difference in the results. All of a sud- den the average profit factor increased to 1.14 a ...