Readers Questions
I received a good question in response to my previous post on starting to learn Python for finance. Here's Mark's question: Thanks again for all your work and all that you share. I am a little behind you in programming abilities but working furiously through my
General Comments
I've written a bit on the difference between high and low level programming languages, and on why I think Python is the right choice for many traders today. In this post, I'll assume you're more or less starting from scratch, and will lay out
Breakout
In my last post, I showed a quick test of a simple system applied to the futures markets. The point of that post was to show how a simple quantitative methodology can show us something about the market, and to apply the quantitative methodology to a trading idea which we
Breakout
In this post, we'll take a look at a common trend-following trading idea: channel breakouts (also called Donchian channels). I want to share with you a way of looking at market tendencies, and structuring tests of those tendencies, that I have found to be very useful and powerful.
General Comments
So let's assume you've read my preparatory posts (here, and here), and that you're on board with the need to learn to do your own analytical work in the markets. Let's also assume that you've taken a deep breath and
Quantitative analysis
Continuing on the theme of my last post, I want to take some time to dig into the options you have when you think about doing your own testing and homework in the markets. This post will necessarily be opinionated and a bit narrow, because I'm sharing my
Quantitative analysis
I think most traders and investors understand that we live in a world in which markets are becoming ever more competitive. To make money in those markets, you must have an edge, and you have to truly understand your edge. But the question remains: where and how do you find
General Comments
I've had a few weeks to kind of reset and reconsider the direction for my blog and podcast. As I said in my previous post, I've been busy on the programming front, and I now have some cool new tools to work with. I want to
General Comments
First of all, a belated happy New Year and happy holidays to all my readers! I want to thank you all for a great 2015. Whether you and I have corresponded, you have looked at my research or are a client, or you are "simply" a reader of
Trend Termination
One of the themes I've written on recently is that we need to be careful how we think about trend change and end of trend patterns. I think too much of noise, particularly in social media, is focused on trying to take a position against a trend so
Readers Questions
Dave asks: "Can you talk a little about order types? Market, limit, and stop orders? Do you work your orders overnight? Do you ever cancel like a stop before it is hit? Thank you." A good, practical question, and the answers can be pretty cut and dried. For
General Comments
I've written a series of short posts this week on simple trading rules that can make a difference. I've tried to make this as broad as possible, so that they will apply to traders working in all styles and timeframes. Today I want to share a