A number of students on my trend following course have mentioned a couple of different trailing stop ideas, so I thought I would put them to the test and see how they perform. Following is an exploration into two different methods; an idea from Nick Radge and a chandelier stop from Charles Le Beau.
If you watch a lot of CNBC or read a fair amount of financial news you will no doubt have heard of the VIX Volatility Index, also known as the ‘fear index’. What is the Vix Index? The VIX is actually the ticker symbol for the CBOE (Chicago Board Options Exchange) Market Volatility Index future and […]
I have spoken before that I am a fan of the Dollar Cost Averaging (DCA) method for investing in stocks. Particularly as a way to invest a regular stream of income. In this article I present a new take on the traditional DCA approach and suggest a way investors can further improve their returns. I […]
I must admit that I have never really dabbled in penny stocks. Like most, I’m all too aware of the blatant risks trading in smaller cap shares. While there are plenty of legitimate companies, many stocks that trade under one or two dollars are just shells for more dubious operations.
In this article I look at the differences between paid, good quality stock market data and free end-of-day stock data. When designing and building trading systems it is crucial to have reliable and clean end of day stock data. I use Amibroker to chart and back-test trading systems but no matter what platform you use, common sense […]
Designing a trading system is about following the right processes and being conservative in your assumptions. I have already talked about the pitfalls of selection bias and I’ve spoken of the importance of stress-testing a trading system thoroughly. Now I shall answer the question ‘what is slippage’ and how does slippage affect trading system performance.
In order to back-test and optimise a trading system you’ll need at least two things; a back-testing platform like Amibroker, and some historical stock market data. When it comes to historical stock data there are plenty of options available depending on what you want to do. Historical stock market data for Amibroker Amibroker comes with […]