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? …
By Joe Ross Power in trading is a fascinating and often misunderstood concept. In general, it involves the capacity to cause something to happen, and effect change. Market movers are able to exert power in the marketplace, but so can individual traders. Individual traders can couple their moves to the power of those able to …
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.
Achieving success as a futures market trader can be a daunting proposition, most traders will agree. Given that premise, why would a successful, longtime futures trader like Joe DiNapoli reveal his trading secrets to the public? “Commodity traders tend to be risk-takers–self-made people. I enjoy them immensely. The public doesn’t realize some of the advantages …
By Jim Wyckoff I have received several email messages from my readers asking about how to best determine entry and exit strategies when trading markets. Here are just a few of their quotes: “Though my success rate has been high, I am only breaking even financially, due to getting out too early in profit and …
A customer signed up for my service the other day and was asking me about stops and different types of market orders.
By Jim Wyckoff In this educational feature, I’m going to tackle an issue about which several of my readers have inquired: How to determine support and resistance areas on the charts. My favorite method (and I believe this the most accurate method) of determining support and resistance levels is to look at a bar chart …
I have discussed in past articles how volume and open interest can be used to help identify and confirm market situations and trading opportunities. I’ll take open interest one step farther in this column by examining the Commitments of Traders (C.O.T.) report, issued by the Commodity Futures Trading Commission (CFTC). The C.O.T. report is released …