To: Ken Long <email@example.com>
Sent: Monday, December 30, 2013 8:11 PM
I have to trade because of the intellectual and emotional challenge and the satisfaction I get from trading well.
I love to trade because I find it interesting, and it challenges me every day to discover who I am and what I can do.
I like to trade because it combines my passions for action, research, intellectual challenge and adaptation.
Trading directly supports my personal and financial goals and rewards me for the time and effort invested compared to other things I can do with my time.
- Having a Trade Exit Strategy – Rules Based Trading Part 3 (optionsanimal.com)
- Used car market ‘challenging’ for motor trade insurance holders (premierlinedirect.co.uk)
- You May Not Have The Money, But Girl You Got The Goods (xxxclusivelyours.wordpress.com)
- Avoiding Emotionally Fueled Trading (tradeking.com)
- The emotions of trading (forexlive.com)
- Scottish motor trade insurance holders to sell more Mazdas? (premierlinedirect.co.uk)
- Wanting to Get Long For a Trade, But . . . (ritholtz.com)
- B&N to buy some of Borders’ intellectual property (seattletimes.nwsource.com)
- B&N to buy some of Borders’ intellectual property (seattlepi.com)
- UBS Rogue Trader Loses $2 Billion In Unauthorized Trades (news.slashdot.org)
- Market in Bull Normal; Market is Overbought on a short term basis
- Equities maintained the gains this week, with volatility declining slightly inspite of weak employment numbers
- Blended monthly rebalancing, current holdings:
- 26 ETF portfolio: FXF, IYR, IEV
- 13 ETF portfolio: IYR, DIA, EFA
- next re-evaluation on/about 1 Aug
- ETF2 notes: no change, adjust stops
- Theoretical exposure is recommended at 90%;
- model portfolio will be at 100%
- weekend review May 15, 2011 (kansasreflections.wordpress.com)
The TradeStation Bundle2 is just about finished; I was proofing the code and appearance today and in the words of Bill Brower, Tradestation programming wizard: “This is very cool”
The “Alphastat” which uses linear regression lines and statistics to define trends, can be applied to any number of symbols in order to find those symbols, from a population with the reatest relative strength vs the market and the rest of the population, and just as importantly, when it goes out of leadership and runs out of steam. It provides an excellent tool to judge when to harvest profits after a good run in a un a unique way. There are a batch of other indicators too which support many different styles of trading, related to finding moments of relative advantage, and a “state change” in multiple time frames.
A state change occurs when the underlying conditions of the symbol/market make a nonlinear change or turning point. Being able to get alerts at the crucial times is very handy
the frog style trading is continuing to impress. Our supertrader continued his performance with a 6R trade today with less than optimal entries and exits. Turning out to be a very robust and popular strategy
Example: MCD (see attached case study) was top 5 Frog candidate today (and also tomorrow), and yielded between 3-5R without any effort at adding positions or finetuning exits
I will be asking our Tradestation programmer to code that as a separate module. his estimate is that a system that performs like this goes typically for 5K in the tradestation world. more to follow 🙂
Tradestation Bundle 1: a set of 6 swing trade mechanical systems, a continuation pattern module (makin it 12 swing systems) and a set of intraday trade management indicators that use rangestat and standard deviation to calibrate profit opportunities
Bundle 2: a set of 6 market and population classification systems that alert you to trends and state changes in all time frames and markets
Bill has seen packages with much less go for 5K each in Tradestation land. IITM clients and seminar attendees get steep discounts; contact me for more detailed specs and prices
- Monex to Buy TradeStation (online.wsj.com)
- Top Active Trader Alert Stocks (AAPL, AIB, NOK, TRAD) (247wallst.com)
- RPT-UPDATE 1-TradeStation Q2 profit in line; sees weak FY10 (reuters.com)
- 5 of Last Week’s Biggest Winners (fool.com)
- Stocks to Watch IV: GE, Xerox, Morgan Stanley and More (blogs.wsj.com)
- Movers & Shakers: Thursday’s biggest advancers and decliners (marketwatch.com)
- Gain Capital shares could fall -Barron’s (reuters.com)
- You: Thursday’s biggest advancers and decliners (menafn.com)
- Proportion and Perspective (Give That Chart Some Room) (businessinsider.com)
- Your Broker Thinks This Will Make You Rich (fool.com)
Important insights from one of our workshop participants this week: a ton of good learning inside these ideas
Our initial stop placement reflects the information available when our trade is initiated. Any price action after the trade provides additional information and can be used to update the stop placement. An example is the use of the MACD histogram to exit before taking a full 1R loss.
If your system is designed to catch singles, don’t wait for the home run before exiting. Take the single and move on (until you can recognize when the market is making it obvious that this time you should hold on for more).
Markets may have unique characteristics that should be taken into account when making framing and trading decisions. DBA, for example, can be framed with tights stops, seems to make orderly moves, and sees more action only after the opening of the grain futures markets.
Framing trades with tights stops right after the open feels like getting caught in a dolphin hunt (the underwater tornado). The lunch and afternoon sessions tend to provide a better environment for identifying trades using the WMB method.
The importance of understanding the type of move you’re trying to capture (F –> C; B –> A), and matching your entries/exits with that type of move.
Respect the R.
Opportunities are available any time the market is open.
- Technical Indicators – MACD (businessinsider.com)
- 5/26/2011: Scalp System: Sniper (tradewest.wordpress.com)
- A belief mapping exercise concerning intraday trading (kansasreflections.wordpress.com)
- Veksler’s Forex Blog: More erratic price action, ugly swings and cleanouts ahead (tradingfloor.com)
- FX Options Update: Greece concerns spark EURUSD vols buying (tradingfloor.com)
- Day-Ahead Musings for Tuesday, 5/16 (ampleanalytics.wordpress.com)
- Day-Ahead Musings for Monday, 5/15 (ampleanalytics.wordpress.com)
- Long Index ETF (tradeking.com)
- Equity Update: Optimism remains as Ford gears up (tradingfloor.com)
some analysis in our chatroom today examined hundreds of symbols (ETFs and large cap stocks) that make their high of the day or low of the day in the first hour of trading. To our surprise there are a considerable number who’s probability of an early high or low of the day is greater than 95%.
That’s a staggering number, especially when we examine how much follow thru after the first hour there can be; we’ll be working this up into a tarding staregy pretty quickly because we like the odds and the additional control it gives over our trading, once the morning shenanigans at the open are past
- The ‘Asia connection’ to the commodity rout (ftalphaville.ft.com)
- XTL: A Better Telecom ETF? (businessinsider.com)
- Mini flash crashes worry traders (usatoday.com)
- Recent Calamities Don’t Slow Down US Equities But What’s Coming Next is Anybody’s Guess (businessinsider.com)
- BRIC ETF Investing: Small Cap Edition (businessinsider.com)
- Most Sold-Off Gold Stocks (GDX, GDXJ, GLD, AEM, KGC, BVN, GSS, JAG, XRA) (247wallst.com)
- How To Play The Gold Stocks Consolidation Phase (GLD, SLV, GDX, GDXJ) (businessinsider.com)
- What is Implied Volatility? (tradeking.com)
- Time to Rebalance in May and Call It a Day (dakotavoice.com)
- Five Low-Volume ETFs Worth a Look (blogs.forbes.com)