Trading Observations

/Trading Observations

Seven Important Traits Of A Strong Trend Following Algorithm

By |March 24th, 2016|

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 […]

Why We Believe Futures Are The Best

By |December 14th, 2015|

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 […]

The Risks Of Market Bias In Day Trading

By |September 1st, 2015|

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 […]

The Importance Of Discipline In Trading

By |August 31st, 2015|

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 […]