Tag Archives: risk management

Brian Johnson’s New Options Publication Now Available

Posted on March 22, 2017 by

The Kindle version ($9.99) of my new in-depth (100+ page) article “Option Strategy Hedging & Risk Management”, is now available on Amazon. The print version ($14.99) should be available on Amazon in approximately one to two weeks. Option Strategy Hedging … Continue reading →

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Posted in Futures, Options, Recommended Reading, Risk Management, Strategy Development | Tagged , , , , , , | Leave a comment

Bested by Rats and Pigeons!

Posted on September 18, 2014 by

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 →

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Posted in Strategy Development | Tagged , , , | 3 Comments

Overcome the Odds

Posted on August 14, 2014 by

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 →

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Posted in Market Commentary, Market Timing, Recession Forecasting Model, Risk Management, Strategy Development, Uncategorized | Tagged , , | Leave a comment

Choosing the Optimal Strategy

Posted on January 23, 2014 by

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

Posted on September 26, 2013 by

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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Doubling Down: Enhancing Returns without Increasing Risk

Posted on September 19, 2013 by

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 →

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Posted in In-Depth Article, Risk Management, Strategy Development | Tagged , , , , , , , | 1 Comment

Top 10 Trader Edge Articles

Posted on August 22, 2013 by

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

A Practitioner’s Guide to Diversification

Posted on August 15, 2013 by

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 →

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