Tag Archives: strategy development

Choosing the Optimal Strategy

When you backtest systematic, rule-based strategies and your theory finally identifies a proven market inefficiency, you will face an interesting problem: which profitable trading strategy should you choose.  Optimization tools test a number of strategies that are all based on … Continue reading

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Posted in Risk Management, Strategy Development, Technical Analysis | Tagged , , , , | 2 Comments

Pyramid Trading: Enhancing Returns without Increasing Risk

Last week I introduced a framework for adding to losing positions safely.  It is also possible to enhance returns without increasing risk by adding to your winning positions.  The approach is called pyramid trading (not to be confused with pyramid … Continue reading

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Top 10 Trader Edge Articles

I started Trader Edge almost 18 months ago and it just occurred to me that I had never provided a list of the most popular articles on the site.  If you did not get a chance to read these articles … Continue reading

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Posted in AmiBroker Code, Futures, Market Breadth, Market Timing, Risk Management, Strategy Development, Technical Analysis | Tagged , , , , , , , , | Leave a comment

Use Economic Filters to Reduce Your Strategy Losses

When developing strategies, many systematic traders focus exclusively on technical analysis, with their primary focus on derivatives of price and volume.  A few traders add sentiment and breadth statistics to further enhance their models.  I suggest going one step further: … Continue reading

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Posted in Economic Indicators, Fundamental Analysis, Market Timing, Recession Forecasting Model, Strategy Development, Technical Analysis | Tagged , , , , , , , | Leave a comment

Trend-Following Strategy Insights

Trend-following has been around for 40+ years and is one of the most widely-used strategies among commodity trading advisers (CTAs).  In my personal library, I have six different books dedicated to the subject. I have experimented with futures trend-following strategies … Continue reading

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Posted in Futures, Market Timing, Risk Management, Strategy Development, Technical Analysis | Tagged , , , , , , , , , | Leave a comment