In a recent traders roundtable discussion on the subject of balancing maximum gain with risk management the question was posed how to reconcile these two issues. A few definitions for the purposes of this essay are in order. First let’s consider maximum compounded return to be defined as a system that is traded at every […]
Category: trading
Profitable ETF Trading Strategies: reflections on System Quality Number
here is my take on the IITM System Quality NUmber idea (SQN): and fat right tails. it’s what I said to chuck whitman on this topic on my -1R loss exits: this is the result of a single trade decision cycle on that trade that is very effective now, on the possibility of a 10R […]
20 year look back on SPY (the market)
on the monthly chart the 2 massive drawdowns are technically similar on a superficial level, but looking closely you will see that the previous massive drawdown tested the bottom several times before steaming back north. the fundamental economy also had not imploded in that one either whereas we are looking at a deconstruction of the […]