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 […]
Tag: training
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 […]
Profitable ETF Trading Strategies: understanding Max pain
Trading psychologists generally agree that there are two dominant emotions in the area of behavioral psychology that influence market price and performance. These two emotions are fear and greed. It is also generally agreed in the scholarly literature that fear is about three times more powerful than greed. It distorts our normal rational analytical mind […]
Profitable ETF Trading Strategies: understanding the Japanese market ETF
The Japanese stock market, the Nissei, is the world’s second-largest equity market in terms of daily dollars traded. Because it is open when the US market is closed it does offer an opportunity to put your dollars to work at different times of the day. One of the ways that the short-term trader and they […]
Profitable ETF Trading Strategies: understanding ETF volatility
There are many different useful definitions of the concept of volatility. For the purposes of this essay I just want to consider volatility in a non-technical way, and that is as the amount of variation in returns around the mean, or the average. In any bundle of returns from a trading system, you will always […]
Profitable ETF Trading Strategies: Appreciating the art and science of trading
In any profession that features a strong human performance factor, there will surely be a mix of both art and science that contributes to the final product and performance level. Since the trading profession incorporates such a large amounts of human psychology at both the individual and organizational level, it’s worth considering how both art […]
Profitable ETF Trading Strategies: understand your trader quality number
The system quality number that is taught by the International Institute of Trading Mastery is a very powerful way of calculating a single number that describes the relative quality of a particular system, given a set of trading results that are typical for that system. It is a methodology that allows you to compare average […]
Profitable ETF Trading Strategies: understanding the limits of back testing
One of the downsides of back testing is that it can lure the trader into overconfidence about systems and the way they have performed in the past. There is always a real danger of curve fitting and data mining to find a perfect system that would have worked with an exact set of market conditions […]