By Jim Wyckoff Many traders attempt to find the single-most “robust” trading strategy possible by looking for one set of rules which works for all markets. Such systems don’t take into account the fact that markets can change quickly and dramatically due to a news event, according to Perry Kaufman. “There are times when a
Henry Carstens VerticalSolutions.com Article in PDF Format Introduction If someone says, “I’m making money buying the SP futures on Friday’s close and selling on Monday’s close, you’ve got to get in on this!” How would you know whether that idea was a good or bad? What about a new trading idea you have – is
In this article we will explain to you how to develop a profitable trading system in five steps: Step 1: Select a market and a timeframeStep 2: Define entry rulesStep 3: Define exit rulesStep 4: Evaluate your systemStep 5: Improving the system Let’s take a closer look at these steps. Step 1: Select a market
I am frequently asked how long one should backtest a trading system. Though there’s no easy answer, I will provide you with some guidelines. There are a few factors that you need to consider when determining the period for backtesting your trading system: Trade Frequency How many trades per day does your trading system generate?
Futures trading covers a vast array of trading instruments, from stock indices and U.S. Treasury bonds to precious metals, energy sources such as oil and gas, and everyday foodstuffs including meats, grains and coffee.