This recent post by Byrne Hobart, CFA at The Diff about backtests is well worth a read. "And that's just what can go wrong with rebalancing in a backtest while assuming transaction costs to be zero. They're not! There are some systematic strategies that end up more or less measuring the implied cost of whatever the strategy is." - true, but I would add that if you find gross, but not net, alpha in a short-term signal, it can still be useful when combined with other short-term signals. Together, a number of individually unprofitable, uncorrelated trading signals can add up to a profitable strategy. I like the way Byrne concludes: "Most of the time, a backtest represents a partly-proven theory paired with a leap of faith." Yup. The "leap of faith" is what quants often call "intuition," even though many of us misuse the word, or even abuse it by applying it to an ex-post explanation of a successful backtest. https://lnkd.in/gZGQNTRP
Vinesh Jha’s Post
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Why You Shouldn’t Buy a Strategy and Just Start Using It It’s not yours, and it might not work. You don’t have confidence in it for all sorts of reasons. Thus, you have to backtest, analyze and investigate it. Some people subscribe to a signal service or buy a set of rules, start trading, and say, “Yeah, I’m a trader.” No, you’re not; you’re just taking your agency and giving it to someone else, saying, “Make me profitable.” But if you buy or build a system and you backtest, analyze, and build confidence in it, then it’s yours, and you are the trader. I use Amibroker, Norgate Data, and Metastock data because I want access to more markets. I use Metastock data for the Asian markets, for instance. Backtesting is a skill to be learned just like any other. There’s lots of material out there to understand that. However, once you’ve backtested and built confidence in those systems, the next step is to run the backtest, extract the equity curves, evaluate how they work together, and develop the right weights so that your portfolio gives you the suitable risk returning characteristics that you want. There are lots of different ways to do it since there are some online tools. I do it in a spreadsheet and have a complex mechanism to do that. It’s about how diversified they are and how much weight I need to smooth the transition points in this globally uncertain environment. You’ve got to have the systems, test them, build confidence, and assign them weights in your portfolio. Once you’ve done all that, it is an easy execution. To find your signals every day, you run the backtest, it spits out what trades the system will take today, you place the orders, and you are done. That takes two to three minutes per system on average. To learn more, read the full article here: https://lnkd.in/gvsW2baW #enlightenedstocktrading #learnstocktrading #stockmarket
How To Evolve As A Trader To Maximise Opportunity (& Manage Risk) In An Uncertain World
https://enlightenedstocktrading.com
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Does day trading work? Get my Cycle Indicator at: https://lnkd.in/gVXnAFiq Can day trading really make money as a side hustle, full time job, or make you rich for day trading and swing trading options, crypto, stocks and stock market, futures, eminis and Forex on TradingView, MT4, MT5, thinkorswim, telegram, discord, webull, reddit, robinhood and other technical analysis charting platforms. - Make sure not to miss a single video from Barry! Click here to Subscribe: https://lnkd.in/bZCfJ8x - Watch the related YouTube video from Top Dog Trading here, "Day Trading System" here: https://lnkd.in/dsmf5hSi - Ready for personal mentoring in options? Watch this video now: https://lnkd.in/dVKTKdzn ---- Chapters: {{000}} ---- Risk Disclosure: http://bit.ly/Risk-Disc --- RISK DISCLAIMER: The information contained on this video is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible. Seek the services of a competent professional person before investing or trading with money. The information contained on this video, is not provided to any particular individual with a view toward their individual circumstances and nothing in this video should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. You should never trade with money you cannot afford to lose. The information in this video is in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. This information is provided \"AS IS,\" without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING
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⚫ Course On Stock Trading ⚫ Stock Trading ⚫ Learn Stock Trading ⚫ How to Trade Stocks ⚫ Learn Cryptocurrency Trading ⚫ Cryptocurrency ⚫ Cryptocurrency Trader ⚫ Cryptocurrency Trading ⚫ Amibroker
Why You Shouldn’t Buy a Strategy and Just Start Using It It’s not yours, and it might not work. You don’t have confidence in it for all sorts of reasons. Thus, you have to backtest, analyze and investigate it. Some people subscribe to a signal service or buy a set of rules, start trading, and say, “Yeah, I’m a trader.” No, you’re not; you’re just taking your agency and giving it to someone else, saying, “Make me profitable.” But if you buy or build a system and you backtest, analyze, and build confidence in it, then it’s yours, and you are the trader. I use Amibroker, Norgate Data, and Metastock data because I want access to more markets. I use Metastock data for the Asian markets, for instance. Backtesting is a skill to be learned just like any other. There’s lots of material out there to understand that. However, once you’ve backtested and built confidence in those systems, the next step is to run the backtest, extract the equity curves, evaluate how they work together, and develop the right weights so that your portfolio gives you the suitable risk returning characteristics that you want. There are lots of different ways to do it since there are some online tools. I do it in a spreadsheet and have a complex mechanism to do that. It’s about how diversified they are and how much weight I need to smooth the transition points in this globally uncertain environment. You’ve got to have the systems, test them, build confidence, and assign them weights in your portfolio. Once you’ve done all that, it is an easy execution. To find your signals every day, you run the backtest, it spits out what trades the system will take today, you place the orders, and you are done. That takes two to three minutes per system on average. To learn more, read the full article here: https://lnkd.in/gr95CPzA #enlightenedstocktrading #learnstocktrading #stockmarket
How To Evolve As A Trader To Maximise Opportunity (& Manage Risk) In An Uncertain World
https://enlightenedstocktrading.com
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Does day trading work? Get my Cycle Indicator at: https://lnkd.in/gVXnAFiq Can day trading really make money as a side hustle, full time job, or make you rich for day trading and swing trading options, crypto, stocks and stock market, futures, eminis and Forex on TradingView, MT4, MT5, thinkorswim, telegram, discord, webull, reddit, robinhood and other technical analysis charting platforms. - Make sure not to miss a single video from Barry! Click here to Subscribe: https://lnkd.in/bZCfJ8x - Watch the related YouTube video from Top Dog Trading here, "Day Trading System" here: https://lnkd.in/dsmf5hSi - Ready for personal mentoring in options? Watch this video now: https://lnkd.in/dVKTKdzn ---- Chapters: {{000}} ---- Risk Disclosure: http://bit.ly/Risk-Disc --- RISK DISCLAIMER: The information contained on this video is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible. Seek the services of a competent professional person before investing or trading with money. The information contained on this video, is not provided to any particular individual with a view toward their individual circumstances and nothing in this video should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. You should never trade with money you cannot afford to lose. The information in this video is in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. This information is provided \"AS IS,\" without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING
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Where does ideas for strategie comes from ? The answer to this question largely depends on your preferred method of acquiring knowledge. One obvious source is practical experience. While trading, you may observe peculiar patterns that are challenging to comprehend. In such cases, it's beneficial to document these patterns, formulate hypotheses, and test them on your trading board. Another significant source of inspiration comes from scientific articles. For instance, a phenomenon identified in the early 2000s is known as the "trading overnight effect" or "trading after-hours effect." The concept suggests that when markets are open, the price process is filled with noise, making it challenging to distinguish between noise and signal. However, it appears that trades conducted during market close contain more information and are purer from a signal standpoint. We could consider a strategy where we would long large positive effect and short large negative ones. #trading #stocktrading #quantitativefinance
after_hours_price_discovery.pdf
faculty.haas.berkeley.edu
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Moving averages play a pivotal role in technical analysis and stand out as the most extensively employed indicator. Traders, regardless of their level of experience, commonly incorporate moving averages into their charts. In our earlier discussions, we delved into the concept of moving averages, explored various types, and examined straightforward yet impactful techniques for integrating them into trading. Now, we will delve into more sophisticated or alternative approaches to leverage the potential of moving averages. Read the Article #TechnicalAnalysis #StockMarket #InvestingTips #MarketTrends #ForexTrading #CryptoAnalysis #FinancialMarkets #ChartAnalysis #MarketInsights #TradingStrategies #InvestmentEducation #FTD #OnlineTrading #FTDEducation
Alternative Moving Average Strategies for Traders - FTD Limited
https://articles.ftdsystem.com
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Day trading options. Get my Cycle Indicator at: https://lnkd.in/gVXnAFiq Day trading options strategies for beginners on SPY explained vs futures: How to day trade and swing trade with technical analysis for day trading and swing trading options, crypto, stocks and stock market, futures, eminis and Forex on TradingView, MT4, MT5, thinkorswim, telegram, discord, webull, reddit, robinhood and other technical analysis charting platforms. - Make sure not to miss a single video from Barry! Click here to Subscribe: https://lnkd.in/bZCfJ8x - Watch the related YouTube video from Top Dog Trading here, "Day Trading System" here: https://lnkd.in/dsmf5hSi - Ready for personal mentoring in options? Watch this video now: https://lnkd.in/dVKTKdzn Risk Disclosure: http://bit.ly/Risk-Disc --- RISK DISCLAIMER: The information contained on this video is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible. Seek the services of a competent professional person before investing or trading with money. The information contained on this video, is not provided to any particular individual with a view toward their individual circumstances and nothing in this video should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. You should never trade with money you cannot afford to lose. The information in this video is in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. This information is provided \"AS IS,\" without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.
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Day trading options. Get my Cycle Indicator at: https://lnkd.in/gVXnAFiq Day trading options strategies for beginners on SPY explained vs futures: How to day trade and swing trade with technical analysis for day trading and swing trading options, crypto, stocks and stock market, futures, eminis and Forex on TradingView, MT4, MT5, thinkorswim, telegram, discord, webull, reddit, robinhood and other technical analysis charting platforms. - Make sure not to miss a single video from Barry! Click here to Subscribe: https://lnkd.in/bZCfJ8x - Watch the related YouTube video from Top Dog Trading here, "Day Trading System" here: https://lnkd.in/dsmf5hSi - Ready for personal mentoring in options? Watch this video now: https://lnkd.in/dVKTKdzn Risk Disclosure: http://bit.ly/Risk-Disc --- RISK DISCLAIMER: The information contained on this video is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible. Seek the services of a competent professional person before investing or trading with money. The information contained on this video, is not provided to any particular individual with a view toward their individual circumstances and nothing in this video should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. You should never trade with money you cannot afford to lose. The information in this video is in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. This information is provided \"AS IS,\" without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.
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Day Trading Strategies. Get my Cycle Indicator at: https://lnkd.in/gVXnAFiq Day Trading Strategies: Learning from the top traders on Wall Street for day trading and swing trading options, crypto, stocks and stock market, futures, eminis and Forex on TradingView, MT4, MT5, thinkorswim, telegram, discord, webull, reddit, robinhood and other technical analysis charting platforms. Discover the hidden potential of day trading and learn how to trade futures and stocks in the live market. This video will show you the secrets of effective market analysis to help you succeed in day trading and swing trading. Don't miss out on this valuable information! - Make sure not to miss a single video from Barry! Click here to Subscribe: https://lnkd.in/bZCfJ8x - Watch the related YouTube video from Top Dog Trading here, "Day Trading System" here: https://lnkd.in/dsmf5hSi - Ready for personal mentoring in options? Watch this video now: https://lnkd.in/dVKTKdzn ---- Chapters: {{000}} ---- Risk Disclosure: http://bit.ly/Risk-Disc --- RISK DISCLAIMER: The information contained on this video is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible. Seek the services of a competent professional person before investing or trading with money. The information contained on this video, is not provided to any particular individual with a view toward their individual circumstances and nothing in this video should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. You should never trade with money you cannot afford to lose. The information in this video is in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. This information is provided \"AS IS,\" without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE
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Day Trading Strategy. Get my Cycle Indicator at: www.EntryIndicator.com Day trading indicator strategy explained day trading and swing trading options, crypto, stocks and stock market, futures, eminis and Forex on TradingView, MT4, MT5, thinkorswim, telegram, discord, webull, reddit, robinhood and other technical analysis charting platforms. - Make sure not to miss a single video from Barry! Click here to Subscribe: https://lnkd.in/bZCfJ8x - Watch the related YouTube video from Top Dog Trading here, "Day Trading System" here: https://lnkd.in/dsmf5hSi - Ready for personal mentoring in options? Watch this video now: https://lnkd.in/dVKTKdzn ---- Risk Disclosure: http://bit.ly/Risk-Disc --- RISK DISCLAIMER: The information contained on this video is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible. Seek the services of a competent professional person before investing or trading with money. The information contained on this video, is not provided to any particular individual with a view toward their individual circumstances and nothing in this video should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. You should never trade with money you cannot afford to lose. The information in this video is in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. This information is provided \"AS IS,\" without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HIN
