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

Chapter Rotation Originally presented in May 2001, this is a longer-term position trading system designed to trade (from the lon ...

Original Rules Prepare to go long when the MAS indicator signals the trend strength in a market. (Long positions are established ...

two strongest of them from the long side. By adding a trend filter to each market, results should improve considerably. The asym ...

at each instance in time, we can risk more and make more on a few well-selected stocks, than we could trading all stocks at all ...

The original setting for the lookback period for the short-term true range was three days. If it turns out that the system is ge ...

lookback for the slope of the average between 10 and 60 days, only resulted in one change, and that was to shorten the lookback ...

before we move on to the short side. The major shortcoming is that the risk–reward ratio, at 0.64, isn’t much to brag about. Wit ...

Of course, a 1:1 risk–reward relationship can only be profitable if the per- centage of profitable trades is at least 50 percent ...

up to
$133. There is still some way to go, but a considerable improvement, despite the fact that the tighter stop lowered the p ...

best results. Just as was the case with relative strength band system, the short side needs to operate a little more quickly to ...

NoShortMarkets(2), LongTermTRLookback(10), ShortTermTRLookback(5), LongStopMulti(2), ShortStopMulti(1), LongTargetMulti(6), Shor ...

LongAvgSlope.21(0), LongAvgSlope.23(0), LongAvgSlope.24(0), LongAvgSlope.25(0), LongTotStrength.2(0), ShortAvgSlope.21(0), Short ...

ShortAvgRelStren.12 = Average(RelStrength.12, ShortRelStrenLookb); ShortAvgSlope.12 = ShortAvgRelStren.12 / ShortAvgRelStren.12[ ...

RelStrength.32 = Close Data3/ Close Data2; RelStrength.34 = Close Data3/ Close Data4; RelStrength.35 = Close Data3/ Close Data5; ...

ShortAvgRelStren.42 = Average(RelStrength.42, ShortRelStrenLookb); ShortAvgSlope.42 = ShortAvgRelStren.42 / ShortAvgRelStren.42[ ...

ShortTotStrength.2, ShortTotStrength.3, ShortTotStrength.4, ShortTotStrength.5); LongTermTrueRange = AvgTrueRange(LongTermTRLook ...

CHAPTER 13 Volume-weighted Average Originally presented in July 2001, this system tries to identify short-term correc- tions tha ...

and the more weight given to the latest closing price. A simplified formula for cal- culating VWA looks something like this: VWA ...

hindsight analysis is not the way to go during the final stages of your system design and testing process, it is a valid approac ...

valid approach when you want to see how the system would have performed given ideal conditions that could only be observed with ...