Is volatility good or bad? Let’s look at it from the perspective of run ups—potential gains, and drawdowns—potential losses. And let’s not forget real gains and real losses. Never take your eye off the ball on what we are trying to do, which is to build a trading system that is statistically reliable so that over hundreds, or even thousands of … Read More
Algorithmic Programs That Will Be Eliminated
Yesterday I wrote about secondary plays, and a program we call Buying the New Low. When a stock makes a new intraday low algorithmic programs buy this new low because they know that short term traders will get short. These programs are betting that only light volume will enter the market when a stock makes a new low. They buy … Read More