Recent content by Straddle8

Thx!

- Bill O Neil - Alexander Elder - The mathematics of money management - Evidence based TA - TA for dummies - Currency trading for dummies - The encyclopedia of chart patterns - Getting started with chart patterns - Trading in the zone - The disciplined trader - The psychology of trading -...

They help you limit your losses, in case a trade turns against you. To cite Ed Seykota:

Thx for that link. And also for that lovely spreadheet!

I think the Turtle System is an excellent example of how a system should be built. To be more precise, the turtle system also had a filter which stated you cannot enter a trade if the previous one was a 2N loser/winner (or something in that way). This filter seems to suggest there was some form...

I think they would enter the trade on the 21st candle, long or short, as long as there's a breakout from the high or the low on the 20st candle. You look at the 10 previous candles and calculte the lowest low. As soon as that one is penetrated you exit (on that candle, or on the candle of the...

This backtest was done without re-allocation. I'll see if I can make the same backtest with re-allocation. I guess you can do the backtest both ways, considering how you would trade out of sample. The only disadvantage is that the backtest doesn't shows you which stocks to buy. You'll have to...

You can backtest all those strategies on this website: http://www.backtest.org/ This strategy: (Market Caps 25mil-250mil (I love this space too) PSR < 1 Sort by 1 yr RS Top companies (25-50 portfilio) Would have returned a 137% return in 2009.

The maximum drop in eq throughout the history of the eq. If your start with 5K and then it goes down to 2K and later it ends on 20K ==> Max DD = 60%. Following such a strategy would mean you'd have to bear a 60% loss in equity at the worst point. I have also seen other calculations, so I...

Using a benchmark can help. E.g. you could compare your yearly (or monthly) results with those from the S&P500. I'm a stock trader and went the other way. I started with basic technical analysis on large cap stocks and became irritated with the variation in my results. Almost every backtest I...

One of the best books on trading with a strategy. Their success was imo mostly due to their money management: - cut losers as soon as possible - hold winners until the trend reverses, not sooner - increase position size if you're winning, decrease position size if you're losing - trade...

Dear traders, Can anyone of you advise me a book on forex trading for people who are already familiar with trading? I've already red over 120 books on trading in stocks and futures, and dozens of academic papers on the subject of stocks and futures and options. In a few months I'm going to...

If you don't have the data you can't extract any numbers or formulas from it.

To be honest, if I had to pick one of the strategies in O'Shaughnessy his book it would also be that one. From an intuitive point of view, you're buying low priced stocks that show relative strength. Have you also tried to backtest any of these strategies yourself?

I strongly advise you to give the book a try :cool: