AI Volatility Edge E-Subscription
OIS Universal Filter E-Subscription
Brian Johnson’s Books
Trader Edge Affiliates
Author’s LinkedIn Profile
DisclosureTrading Insights, LLC receives compensation for purchased made through affiliates above.
Limitation of LiabilityUnder no circumstances, including but not limited to negligence, shall Brian Johnson and/or Trading Insights, LLC be liable to you for direct , indirect, incidental, consequential, special, punitive or exemplary damages. Please read the Disclaimer & Terms page in its entirety.
Tag Archives: risk management
I am a staunch advocate of systematic or rule-based strategies and humans excel at pattern recognition, which would seem to give us an advantage in developing these types of strategies. Unfortunately, we might be a little too proficient. We tend … Continue reading
I heard something remarkable this morning that reminded me just how ill-suited the human brain is for making investment decisions. The inherent decision-making deficiencies that we all share are well documented in decades of behavioral economics and behavioral finance studies, … Continue reading
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
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
Adding to losing positions is a sucker’s game and playing this game continues to bankrupt an ever-expanding group of traders and investment managers. As a rule, traders should never add to losing positions. However, there are exceptions to every rule. … Continue reading
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
Every finance student is taught the benefits of diversification. Some learn the requisite formulas and a few even understand how to apply the formulas in practice. Unfortunately, business schools leave out the most important lesson: the limits and costs of … Continue reading