Types Of Trading Systems and Finding Yours

Feb 182014
 
Types Of Trading Systems and Finding Yours

How many types of trading systems are there? Google this question and you will get several answers. Amazingly – there is no agreement on this question. It appears the answer, as in beauty, is in the eye of the beholder. This is because different authors put different trading systems into different size buckets. One author [...]

Be Mentally Prepared – Trading Streaks Mess With Your Head

Mar 152013
 
Be Mentally Prepared - Trading Streaks Mess With Your Head

WHY DO I EMPHASIZE LOSSES IN A ROW AND NOT WINS? You will notice throughout this website I talk about losing streaks much more than winning streaks – but they both occur – so why emphasize the losing streaks? Well the common sense answer is that a string of losses can destroy your trading capital [...]

RISK DISCLOSURE    (Restated Excerpts From Website Terms Of Use, See Entire Website Agreement Here.)

Trading or investing in stocks, futures, commodities, index futures, options, spot currency or any other securities involves substantial risk and is not suitable for all users of the Site. You must be aware of the risks and be willing to accept them in order to trade in any financial market or securities. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on the Site. The past performance of any trading system or methodology is not necessarily indicative of future results.

None of the Information provided on the Site is intended to be financial advice, investment advice, trading advice or any other advice. The Information on the Site is general in nature and is not specific to you the User or anyone else. YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED ON THE SITE WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A PROFESSIONAL BROKER OR COMPETENT FINANCIAL ADVISOR.

All performance results published on the Site regarding any trading system or methodology are generated by computerized backtesting and are therefore considered "Hypothetical or Simulated Performance Results" and do not represent trading in actual accounts.

CFTC RULE Rule4.41(b)(1)(ii) HYPOTHETICAL AND SIMULATED PERFORMANCE DISCLAIMER
 

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.