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I will explain what this chart is about in a minute. Many times I heard that trading has emotional asymmetry. For example on negative days we often feel not great, well, because the money was lost. On positive days we worry about keeping the profits. Then edges don’t last forever and a trader...

Backtesting engine. I wrote one myself, and can confidently say - not again. Lookup their AFL language and strategies examples. It should help to get an idea which things you would not need to be coding yourself if you use it. I will oversimplify, but writing a strategy in Admibroker can look...

Too little information on what exactly you are trying to test. In general - look into AmiBroker. It is one of the fastest / flexible backtesting platforms. You will need data. Yahoo is commonly used as it's free. Very limited intraday. Mostly for EOD prices but quality is questionable. Norgate...

Not in any automated sense. There is truly too many things that can work in trading to tap into everything. This is mostly why. Resource constraints. If I would ever to start a fund, I would probably put a guy on researching applicability of ML/AI to trading. Meanwhile, I am curious to learn...

Reading recommendations: William Eckhardt: A Chapter in "The New Market Wizards" Howard B Bandy: "Mean Reversion Trading System: Practical Methods for Swing Trading" Larry Connors: "Short Term Trading Strategies That Work" Laurens Bensdorp: "Automated Stock Trading Systems" Cesar Alvarez...

What a week... +8.5%, every day was positive. Even better in $ figures as I added some spare cash from my bank account literally few days prior to the last week. Sudden volatility at the tops all time highs is the best for my systems. As no one expects it, so overbought stocks fall down way...

I trade very similar to that. Link to a journal Val

End of month update: ~4% of this month performance was discretionary trade in BIGC. Not something I normally do, but my algo shorted it and it was a big outlier for several reasons, thus catching my attention. And I traded discretionary around it. Done a lot shorting in a past and have a...

An aspiring investor - so what is all this investment business about? Old timer - lots of hard work and research An aspiring investor - doesn't sounds like it fits my goals, is there other way?

BIGC upside premiums last week were completely wild. When underlying was at 140$ couple of days ago Sept 18 180$ CALLs were 16$... People think if a tech company can double in 2 days why can't it x3 / x4 in two weeks? Maybe 10x? Madmen's math. It was my biggest discretionary 24h gain over a...

While @jharmon is absolutely correct, there is another way to put it. Think of it this way - when you tested your strategy, you set precise rules. Let's assume those rules gave you edge and positive expectancy. If looking at what happens in the middle between entry and exit wasn't in your...

Glad you started! Hard and smart work does pay off. No one ever knows if their stuff will keep working in the future. Enjoy the ride. Val

2 of my different short systems picked it at different points. One on a day when it peaked (there was not way of knowing of course), second one after it started falling too fast with gaps. Both systems are designed using 70 years of data for whole US stock market including delisted companies. No...

Asymmetric Leverage without a cold blooded assessment of outcomes distribution and the extend to which most of them will payoff has probably as much value as the power of positive thinking without doing. Can be waking up every morning and thinking how it is great to be alive, that a sun is...

Appreciate that. Not sure if I can offer any great ideas here. I started a business in tech few years ago with a few partners and we’ve been doing well, growing from 3 to ~60 people and now having healthy valuation within our sector. There was no magic. None of us were school dropouts who...

Btw, this is a great question and I appreciate that you asked. Here is another way to put it - I believe in 2 ways of achieving ambitious financial goals: Using Asymmetric Leverage (AL) Using Compounding Where Asymetric leverage is something that has an unlimited potential with a limited...

Alan Watts' talks are amazing and deeply comforting at the time of hardship or stress, though, it does concern somewhat that a person who sounds like someone who has found all the answers died of "suicide by alcohol".

It seems that a developer of the software I am using for backtesting (RealTest), is reading this thread! He have reached out to me after he saw my post. Wow!!! :) He immediately offered a very easy solution how to show % on those graphs I post so it is a bit more relevant. In the future that's...

Trading for me is a diversification of how I get to my ultimate wealth goals. My plan has 3 components. Trading is one of them. Making good money and not being obsessed with spendings I have some spare cash and don't want it do be idle. That's what I am posting here about. Wouldn't trust anyone...

In my opinion, when trading mechanically there are 2 most important things: Are your models performing well? Meaning - staying within their intended boundaries in terms of return / DD from equity high / drawdown duration Are our live executions matching the model? Now if I really think about...