The market never goes up in a straight line, it seems. Lately, in fact, it has been surging wildly in one direction and then in another, creating whipsaws that have chased many traders away because of their inability to adapt. It is still possible to trade for trends while managing your risk in such a […]
Tag: Investing
Profitable ETF Trading Strategies: Risk management and re-entry
If risk management is the key to long term survival in a volatile stock market, then re-entry is the key to sanity. Just as there are old mountain climbers and bold mountain climbers, but no old, bold mountain climbers, you can bet that life long traders have mastered the essential first law of trading: don’t […]
Profitable ETF Trading Strategies: applying short-term market conditions
It is normal to find trading systems and strategies that focus on particular targets are met set up filters and set up criteria that have been back tested in a variety of market conditions to provide a statistical edge. If you are trading large cap ETFs and large-cap US stocks, you will improve your […]
Profitable ETF Trading startegies: Stock quality number
a subtle way to find stocks beginning to quietly outperform their peers within the Dow30 industrials. Using a formula for computing quality that considers both the gains and the relative volatility over various time periods allows us to examine relative performance improvements in a way that cannot be duplicated with reading individual charts the first […]
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 […]
Profitable ETF Trading Strategies: refining the exit efficiency index
Chuck LeBeau developed a powerful analysis tool for traders called the exit efficiency index. Briefly, it’s an analytical process to examine the quality of your average trade exit within a reasonable timeframe around your actual trades. Understanding the technique will help you tune your system to typical market conditions where you are seeking to exploit […]
Profitable ETF Trading Strategies: understanding exit efficiency
Chuck LeBeau is a master trader and teacher who want ed to examine the quality of his exits, based on the belief that exits are far more important than entries in a trading system. Since there were no existing measures available to use for his analysis he decided to invent his own, which he called […]
Profitable ETF Trading Strategies: reflecting on the gold ETF
There are two ETFs that focused directly on gold, the commodity. The first one has a symbol of GLD and is by far the most heavily traded of the two ETFs, probably because it was the first one to market. The second symbol is IAU. These two ETFs trade so closely together that it would […]
Profitable ETF Trading Strategies: applying the laws of large numbers
When you have a statistical edge in the market, the first thing you want to know is how reliable it is. If it turns out that your edge is robust, that means it can be relied upon to work for you in most if not all types of markets. When you have such an edge, […]
Profitable ETF Trading Strategies: understanding the stealth trade
Behavioral psychologists have pointed out that people do not act like rational actors when it comes to investing and trading in the stock market. In addition to fundamental factors like the business cycle, there appear to be psychological motivations at play that help to explain market performance and price fluctuation. A short term or intermediate-term […]