Wednesday 31 August 2016
Wednesday 9 March 2016
How to Prepare Yourself for These Two Unpleasant Trading Situations
I consider breakout automated trading strategies (ATS) to be working, robust and timeless trading technique, which I really like and which still remains my current domain. During several years of live trading, I have experienced a couple of crucial situations that you should be aware of since the very beginning because they all are really realistic and can happen to you as well. Two of those I would like to point out in today's article. If you will be prepared in advance, your trading will be much easier.
Case Study 1: ATS Stagnation
In a portfolio of every trader you Trade X Confidential will find quite a high number of ATS systems, that have been through stagnation. It really doesn't matter which time frame you trade. And it even doesn't matter how robust the system is or what logic it is based on. From time to time, every system will have a period of stagnation and you cannot predict it or avoid it.
How does this stagnation period look like?
One example from my own portfolio - I have built the strategy in 2011 and have been trading it live since then. The stagnation period came in August 2013, lasted till December 2014. That is 1.5 years going just up and down.
As you can see, the stagnation period has really been long and it brings very strong uncomfortable feeling. Especially the beginners in ATS trading automatically expect the strategy to earn money regularly from the first day live. They don't even want to consider the possibility that the strategy might be in the beginning of stagnation period or even in the beginning of a new drawdown! Unfortunately, this is all part of trading (of any trading style, it is not only about ATSs) and you should be ready for it. Most of my systems, which have gone through stagnation period, have recovered after all and made a new equity high. The fact that the strategy is not profitable for a couple of months doesn't have to mean that it is not working or that ATS breakout technique is not working as such! All you need is to be patient and have a realistic point of view. The thing that can help you is to diversify your portfolio across the markets and reduce the stagnation period, but it is good to be ready for coming stagnation period.
What have I done RIGHT to be always ready for a situation like this? It is simple: massive diversification across the markets and various strategies. This is the most important rule for stable profits in trading.
Case Study 2: Exceeded Backtest Drawdown
In my trading career, I have learnt a tough true: the drawdowns from optimization backtests serve really just for your basic orientation. I have been through situations when a strategy have created new, higher, historical drawdown.
Such situation happened to me with one of the strategies, which I have been trading live since 2011. The strategy has in 2014, which has been the worst year in index markets in the last decade, gone through a solid drawdown that exceeded the one from historical backtests.
Situation like this one is really unpleasant and the lesson is that every time when you set up a realistic drawdown, it is important to look at the equity from OOS periods, or to use Monte Carlo analysis that can offer you more realistic image of what to expect in the future.
And what have I learnt to do RIGHT?
What I do in a similar situation is that in Trade X Confidential drawdowns like this one I reduce the number of contracts on given ATS.
After all, the strategy has recovered from the drawdown - and that can be applied to most of my strategies that have experienced new historical drawdown. You really need to be patient here and in some cases I decide to replace the underperforming strategy for the one which currently has better results. Such situations are not pleasant, but they realistically can happen so it doesn't make any sense to close your eyes and pretend this cannot happen to you. And again, the diversification across the markets is a really good way how to handle these situations better.
Conclusion
The conclusion of this article is that the holy grail really doesn't exist. I have experienced bad times in all trading areas - discretional, options or spreads trading. Sometimes I experience it even when trading ATSs. But the ATS advantage is that in the moment like this you don't waste time - everything is automated so you don't have to sit and stare for hours at your computer screen and waste your time, you can, in the meantime, be productive.
This is one of the big ATS advantages.
Thursday 3 September 2015
Proven Profits Review
This test should be carried out to prevent common accidents from happening at all cost. Otherwise, the outcomes could be disastrous and costly. In all commercial and industrial locations, slip resistance testing is a must to clearly establish the risk and apply various implements to outwork them. This is done either at the location or within the certified laboratory of the testing agency.
Specific Locations To Be Tested These days Proven Profits Review there are many flooring options and most architects and designers tend to select flooring based on appearance. After building construction, owners find themselves in trouble because unexpectedly the flooring in the entrance lobby, restroom, spa, pool deck, etc is slippery when wet. To avoid expensive mistakes, slip resistance testing is a must for the following specific locations:
http://quantumvisionsystemreview.com/proven-profits-software-review/
Specific Locations To Be Tested These days Proven Profits Review there are many flooring options and most architects and designers tend to select flooring based on appearance. After building construction, owners find themselves in trouble because unexpectedly the flooring in the entrance lobby, restroom, spa, pool deck, etc is slippery when wet. To avoid expensive mistakes, slip resistance testing is a must for the following specific locations:
http://quantumvisionsystemreview.com/proven-profits-software-review/
Saturday 29 August 2015
Account Doubling App Review
The polishing stage takes several steps. The workers begin with a rough diamond polishing pad and then progress to finer grade pads. Once the final cuts are made, each piece goes through the process once again before shipping to your home.
Once the countertops are installed in your home, the installer may use a fine, portable polishing tool to remove any small scratches from the transportation process. Granite countertops have been designed to last the life of the home. As an owner, you are responsible to protect this investment you have made in your home.
The long lasting nature of granite makes it popular for many uses. Memorials monuments and countertops are just a few examples of how this enduring stone is used. In addition to the wear and tear, it is able to endure in the kitchen, this tough stone endures the elements, making it an ideal choice for grave markers.
https://www.linkedin.com/pulse/account-doubling-app-review-does-scam-navin-kumar
http://quantumvisionsystemreview.com/account-doubling-app-review/
Once the countertops are installed in your home, the installer may use a fine, portable polishing tool to remove any small scratches from the transportation process. Granite countertops have been designed to last the life of the home. As an owner, you are responsible to protect this investment you have made in your home.
The long lasting nature of granite makes it popular for many uses. Memorials monuments and countertops are just a few examples of how this enduring stone is used. In addition to the wear and tear, it is able to endure in the kitchen, this tough stone endures the elements, making it an ideal choice for grave markers.
https://www.linkedin.com/pulse/account-doubling-app-review-does-scam-navin-kumar
http://quantumvisionsystemreview.com/account-doubling-app-review/
Tuesday 25 August 2015
Forex Precog Review
he first point to remember is that any time you are trading in the Forex markets, you are actually exchanging one currency for another. In the world of Forex trading, currencies do not have value by themselves -- they only have a comparative value that is expressed as a Forex quote. So if we are looking at the EUR/USD, the number that is given as its value shows the number of Euros that can be used to buy the US Dollar. If we are looking at the GBP/JPY, we can see that number of British Pounds that can be used to buy one Japanese Yen.
The first currency is referred to as the base currency and the second currency in the pair is referred to as the counter currency. So if you believe that the first currency is likely to rise in value, then it is generally a good idea to take a long position (buying the currency pair). If, however, you believe that the second currency is likely to rise in value, it is generally a good idea to take a short position in the currency pair. Recent market reports from
http://newsletters.getresponse.com/archive/ourreview/Forex-Precog-Review-System-Free-Download-206695703.html
http://gr8marketingideas.com/forex-precog-software-review/
The first currency is referred to as the base currency and the second currency in the pair is referred to as the counter currency. So if you believe that the first currency is likely to rise in value, then it is generally a good idea to take a long position (buying the currency pair). If, however, you believe that the second currency is likely to rise in value, it is generally a good idea to take a short position in the currency pair. Recent market reports from
http://newsletters.getresponse.com/archive/ourreview/Forex-Precog-Review-System-Free-Download-206695703.html
http://gr8marketingideas.com/forex-precog-software-review/
Forex Precog Review
While doing the combination of vowels and consonants in your brain, try and be racking your memory for the lost one: be listening to the sounds these combinations are giving in your brain and try to see if they have any similarity with Forex Precog Review the lost memory. By being very focused this way, you will definitely hear a sound that has a striking resemblance to what you are searching for. You certainly need to be focused in your mind while doing the processing.
I mention Ending as the first thing you should try to remember because it is the aspect that is much easier for the brain to recapture than any other part of any lost memory, and if you can recall the Ending it means you are less than half-way to go to Forex Precog Review recall other aspects. Our Ending in this example is "Einstein" but it could be any other thing order than a name: Ending of a story, Ending of an event and so on, anything that comes last in memory you are trying to recall is the Ending.
Though this whole process of memory exercise can be a tricky one for a starter, but the joy you derive from doing it if you are Forex Precog Review successful at the end is worth it. As a starter, it can take some time to complete the task, especially, the combination aspect, but with time and consistency, you will definitely master the processing.
http://quantumvisionsystemreview.com/forex-precog-review-free-system-download/
http://hortonworks.com/community/forums/topic/forex-precog-review-free-download-system/
I mention Ending as the first thing you should try to remember because it is the aspect that is much easier for the brain to recapture than any other part of any lost memory, and if you can recall the Ending it means you are less than half-way to go to Forex Precog Review recall other aspects. Our Ending in this example is "Einstein" but it could be any other thing order than a name: Ending of a story, Ending of an event and so on, anything that comes last in memory you are trying to recall is the Ending.
Though this whole process of memory exercise can be a tricky one for a starter, but the joy you derive from doing it if you are Forex Precog Review successful at the end is worth it. As a starter, it can take some time to complete the task, especially, the combination aspect, but with time and consistency, you will definitely master the processing.
http://quantumvisionsystemreview.com/forex-precog-review-free-system-download/
http://hortonworks.com/community/forums/topic/forex-precog-review-free-download-system/
Saturday 22 August 2015
Madison Gordon Diet Plan 2.0 Review
There is no shortage of talk about the type of person that should trade, personality traits that are conducive to trading, and overall trading technique. My general observation is that traders portray their profession as something akin to brain surgery. There are, in fact, very technical and complex trading systems employed by professional traders and they certainly would not be a good choice for a trader who plans to day trade from his or her home. But I tend to disagree with the complexity argument in trading, and believe that effective trading is the result of a proper mindset and thorough preparation. And really, neither is terribly difficult.
First and foremost, a good trader realizes that day trading e-mini contracts is not a get rich scheme. Further, if you approach trading and highly aggressive manner in hopes of striking it rich you will fail. You have the wrong mindset. A good trader fully understands that consistent trading is the key to winning trades. Aggressive trading usually entails initiating low probability trades with predictable results. A good home trader will stick with trading with the trend and being highly selective in the trades he or she takes during that trending period. There can be no substitution for this methodology, because aggressive trading inevitably results in catastrophic results.
And what causes aggressive trading? It's the old get-rich-quick mentality many traders believe. Oddly enough, I don't necessarily blame this condition on the individual trader. I was perusing some of the trading education programs this morning and was shocked at some of the claims the programs were putting forth. Many advertised that you could double your money in a single month, and others claimed they averaged 35 points per day on the ES e-mini contract. This is a real head scratcher, as I know of no methodology, or at least no sound methodology, that will allow a trader to attain these sort of rates of return. Potential traders are misled as to the potential they may realize if they sign up for "Course A" or "Course B". The claims of many of these trading practitioners are well beyond what any day trader can expect. Personally, I suggest that earning 4 to 6 points every day, on a consistent basis, would qualify you as a competent trader. Incidentally, depending upon the number of contracts he or she traded, you would make a tidy sum with this much smaller prediction of potential earnings.
http://hortonworks.com/community/forums/topic/madison-gordon-diet-plan-2-0-review-free-pdf-download/
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