Systematic Advantage #28: Allows you to test your trading plan before trading begins. One of the most significant benefits of systematic trading is its capacity for rigorous backtesting and simulation. Before a single actual trade is made, a systematic trading approach allows you to thoroughly test your trading plan against historical data and hypothetical scenarios. This [...]
Fear and Greed: The Emotional Roller Coaster of Investing Investing in the financial markets exposes investors to a wide range of emotions. Two of the strongest emotions driving investment decisions are fear and greed. Both of these emotions can tremendously impact the investment process, causing investors to make hasty decisions that can jeopardize their long-term [...]
Last week I wrote a blog about the Black Monday market crash in October 1987 and mentioned the trader Paul Tudor Jones. I thought I'd add to the story and talk more about Jones and his successes and failures over his career. The Success Story of Tudor Jones Paul Tudor Jones is a name that resonates [...]
The “Trader's Mindset” micro-blog is the perfect source of inspiration to help you stay focused, determined, and motivated on your trading journey. Prioritizing Long-Term Gain As a trader, it's crucial to resist the impulse to make rushed decisions based solely on the current market situation and instead take the time to weigh the potential long-term [...]
Title: The Little Book of Sideways Markets: How to Make Money in Markets That Go Nowhere Author: Vitaliy N. Katsenelson Overview "The Little Book of Sideways Markets: How to Make Money in Markets That Go Nowhere" is an insightful and thought-provoking guide for investors navigating the notoriously tricky financial market investing world. Written by veteran [...]
The "Performance Metrics 101" blog series is geared towards providing traders with the essential evaluation tools they need to assess trading performance accurately. The goal is to provide a complete understanding of these tools, enabling traders to use them effectively. Maximum Favorable Excursion: Unlocking the Potential of Your Trades When trading, having an edge over [...]
The Dow Jones' Historic Drop on October 19, 1987 October 19, 1987, a day that will forever be remembered as "Black Monday," was a moment of unparalleled panic and chaos in global financial markets. In a single trading day, the Dow Jones Industrial Average (DJIA) experienced the largest one-day percentage drop in its history, plummeting [...]
Systematic Advantage #27: Systsm can hedge themselves without feeling conflicted. In the trading world, hedging is a crucial strategy to manage and limit potential losses. However, manual hedging often leads to conflicting emotions due to its risky nature. Systematic trading eliminates this issue by separating emotional decisions from the process of placing trades. This is [...]
How much coffee does a Coffee Futures Contract Control in real terms? If you've ever wondered how many Venti-sized cups of coffee can be produced from a coffee futures contract, you're in the right place. In this blog post, we'll dive deep into the world of coffee futures and answer that very question. So, sit [...]
The Technical Analysis 101 blog series is your guide to understanding trading concepts, price patterns, and technical indicators. Every post will focus on a specific topic to expand your knowledge and elevate your trading game. The Life and Legacy of Martin Zweig: A Legendary Stock Investor and Eccentric Genius Martin Zweig, a man famously known [...]
