Drawdown in trading is a critical risk measure that every trader must understand to develop a profitable and resilient trading system. Whether you’re a beginner learning stock trading or an experienced trader refining your systematic trading strategies, managing...
PROBLEMS MOST STOCKTRADERS FACE After coaching and mentoring many traders in different markets, I realized and noticed most problems traders face. They are categorized under the following: Overload of Information There is much information in the market nowadays; data...
What is Survivorship Bias and Why is it a Problem for Backtesting? One of my mentoring students sent me a really great question today which I thought was such a useful lesson that I wanted to share it with everyone in my community… This is important because...
Why is backtesting so powerful? Backtesting is one of the most powerful tools in a technical trader’s toolbox. With modern backtesting software you can backtest your trading rules over thousands of stocks, over the last 20+ years of market history in just...
In my “System Trader’s Advantage” article we discussed what trading systems are, how systematic trading helps traders and how backtesting gives systematic traders an edge over other traders. In this issue I want to discuss what actually makes a...
