There are many types of trend following algorithms that are used by money managers with different timeframes (intraday to long term) and different techniques using indicators (moving averages, support and resistance, Bollinger bands, Donchian channels, parabolic SAR, ADX, etc). However, any strong trend following algo will have the following 7 characteristics.
1) Lets Winners Run
Any strong trend following algorithm will feature […]
I know what you’re thinking (or at least a good portion of you): “Bear market? We are around 2050 in the S&P 500, oil is above $40 per barrel, and because of the Federal Reserve’s statement last week, the stock market is poised to rally further going forward.” Not so fast my friend. We are at a very interesting point in […]
Compared to other tradable assets, we believe that futures are the best to trade for many reasons. In comparison to forex, or foreign exchange, futures tend to have higher effective leverage (via daytrading currency futures and using lower day margins) versus spot fx (for US based forex brokers). In addition, futures are much more transparent and regulated by the CFTC […]
We are happy to announce that we are now a registered Commodity Trading Advisor (CTA) with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA # 0491413). Now we just need to get our disclosure document approve so that we go after new clients!
The Euro/US Dollar futures chart above fully demonstrates the risk of market bias and the negative impact that it can have for day trading purposes. The chart includes 4 trading days worth of data, June 24-26 and June 29th, and the separation for the days can be seen in the vertical white lines on the chart. After the market closed […]
Human emotions, and the ability to have the discipline to control them, are absolutely vital to the success of discretionary traders. Bias, fear, fatigue, impatience, and overconfidence can hurt manual traders’ ability to trade successfully and many spend lots of time and money trying to negate these human emotions by attending courses and reading books on trading psychology. […]