Developing traders are sometimes humble (or desperate) enough to make a request for help that sounds something like “just show me”, “give me a step by step”, “what’s an if-then that I can use”, etc. The response we provide is usually disappointing. The developing trader wants the answer to begin with “whenever you see this happen, do this…”. However, our … Read More
A Formula for Evaluating and Selecting a Set of Trading Systems
Here are the two main ideas to focus on while you watch this video: – A Small Positive Drift + Diversification = Smooth Returns – Smoothness is not the only goal. We want Smoother AND Steeper returns. Furthermore, I hope these concepts demonstrate that smoother and steeper results can be achieved without taking on excessive leverage. Share your thoughts with … Read More
SMB Systems Webinar
Next Monday, Andrew Falde will be presenting a webinar for traders that are interested in developing and testing trade ideas on years of market data in minutes – without learning how to program. In this one hour webinar you will see live examples and learn enough to immediately begin finding market edges on your own. The webinar is free but … Read More
The PlayBook Checkup: Fade Trade $DEPO
Below is our newest installment of the 2014 edition of The PlayBook Checkup with Bella, author of One Good Trade and The PlayBook. During these sessions a trade archived by a Junior Trader from our desk will be reviewed by Bella. Real-time attendance is free for SMBU Tools subscribers, who can also ask questions during the event. In this video … Read More
April 21, 2014 Locke In Your Success Weekly Market and Position Update
No relevant positions Risk disclaimer John Locke
How To Lose All Your Money
We have one more major thing to look at as we build out our casino—volatility. We know the house edge for every game, but we also need to know some basic statistics before we open the doors of our casino. Let’s just focus on standard deviations for this discussion and how they affect our returns, and the bettor’s returns. Game … Read More
A Few Spins Of The Wheel Redux
We made a fundamental error in calculating the returns in our last article, and many thanks to one of our readers who was on his toes and caught it. Some of our calculations were based on dollars per trade and others on dollars per share—clearly a case of pineapples and pomegranates, along with doing the calculations much too late at … Read More
A Few Spins Of The Wheel
Last week we talked about the casino’s edge which in the trading world is called expectancy, but all that expectancy tells us is whether or not our trading strategy is likely to be profitable or not—but not how much money we might make. How profitable depends on how often we have a chance to trade our system—will it be a … Read More
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