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Systemstrategy

Stock feedback loopStock market is a adaptive system or a stock, with feedback loops (for inflow, outflow function). Where nobody knows the outcome or future, but feedbacks (corrections or resistance) gives tells (makes inflows or outflows). Without a common leader. Economists think in models (price is the result of supply-demand, or inflow-outflow) that helps to explain system behavior (short term moves), but models are just ideas to explain complex world (models work until they dont). System thinkers study the stock not aggregate behavior . Looking at markets trough perspective of "eco system" helps better understand the drivers or moving forces?
FOREXCOM:SPX500Education
by citsvar
The most common malpractice in all of Trading: Back-testingGiven ANY in- or out-of-sample time series, including purely random, synthetic data, anyone can generate (inflate) ANY Sharpe Ratio by repeatedly applying different trading or investment strategies to the same time series sample! By definition, purely random data has no discernible structure. Consequently, no method can exist to predict such a sequence - I.e., Sharpe Ratio = 0 must hold in all instances. Yet, ... See main graph! In the past It has been shown just how easy it is to generate Sharpe Ratios of 4, 5 or even >6, on any data, including on purely random, synthetic time series data when in fact, the only possible value in those instances should be S.R. = 0. As a matter of fact, this misleading (self-defeatists?) practice is so common and wide spread in finance and trading that the American Statistical Association considers it "unethical" (American Statistical Association ). (More importantly, it is a remarkably expensive way to fool oneself.) The above stems from applying the same rejection threshold for the null hypothesis under multiple testing will grossly underestimate the probability of obtaining a false positive. Unlike in the "other sciences", there is no "replication crisis" in finance or trading, simply because such checks don't even exist there - since those would be impossible to carry out. (Is that why the only two kinds of academic papers which never get revised or retracted are written in the fields of Finance and Theology?) The bottom line; In the common case of testing a trading or investment system, given a set of out-of-sample time series, one MUST increase the rejection threshold for the null hypothesis in proportion to the number of times ("peeks") such tests are carried out! (Good luck fooling yourself that way!) Anything less is just simple curve-fitting! For more in-depth explorations: Marcos López de Prado, Michael J. Lewis codemacher.com
CME_MINI:ES1!Education
by Nemo_Confidat
5
TRADING SYSTEM(Process) Part2Business Process Architecture, ... is a description of the organization's business model and strategy, its goals and its performance metrics A Trading Process Architecture is the overview of a set of trade processes that reveals their inter-relations, which may be extended with guidelines to determine the various relations between trade processes. Having a trade system process architecture in place provides guidance for the actual modeling of the involved Trading system processes
BEducation
by TaherJalili
Systematic Trend Following: Buy LTC USD## OUR APPROACH: - 100% Systematic Trend Following Trading - Trading Long and Short Signals with a medium-term time frame to capture +50% price moves - Always protect your position with a stop loss (initial stop loss turns into trailing stop loss) ## TRADING LONG SIGNALS: - Go long as the price closes above the "orange" solid Channel Line - The "purple" dotted line always shows your current stop loss (it is trailing) - Ride the trend as the price moves up - Exit the position only if the price closes below the trailing stop loss ##TRADING SHORT SIGNALS: - Go short as the price closes below the "orange" solid Channel Line - The "purple" dotted line always shows your current stop loss (it is trailing) - Ride the trend as the price moves down - Exit the position only if the price closes above the trailing stop loss ## OUR TRADING SETUP (Hit the links below to sign up for the services we love!) Data and Charts by Tradingview: tradingview.go2cloud.org Trading on Binance: www.binance.com Trading on Bitfinex: www.bitfinex.com ## OUR FAVORITE BOOKS (Must reads!) Trend Following Trading – How to make a fortune in Bull, Bear and Black Swan Markets amzn.to Trend Commandments – Trading for Exceptional Returns amzn.to The Rule – How I beat the odds in the markets and in life – And how you can too amzn.to Market Wizards – Interviews with Top Traders amzn.to
BITFINEX:LTCUSDLong
by TrendTradingProfits
Systematic Trend Following: Buy EOSUSDOur approach: - 100% Systematic Trend Following Trading - Trading Long and Short Signals with a medium-term time frame to capture +50% price moves - Always protect your position with a stop loss (initial stop loss turns into trailing stop loss) Long Signals: - Go long as the price closes above the "orange" solid Channel Line - The "purple" dotted line always shows your current stop loss (it is trailing) - Ride the trend as the price moves up - Exit the position only if the price closes below the trailing stop loss Short Signals: - Go short as the price closes below the "orange" solid Channel Line - The "purple" dotted line always shows your current stop loss (it is trailing) - Ride the trend as the price moves down - Exit the position only if the price closes above the trailing stop loss
BITFINEX:EOSUSDLong
by TrendTradingProfits