December 2, 2014 Today’s markets are almost entirely driven by algorithmic trading – a new dynamic that invalidates most technical indicators. The PhaseTrader® indicators were developed to address this problem. They are designed to detect and respond to the activities of program trading systems in a variety of financial markets, and they are currently licensed by hundreds of individual subscribers … Read More
Webinar: Create a System to Trade Breakouts with Steve Spencer
Join SMB partner Steven Spencer on Thursday, July 18 at 4:30pm ET for a discussion on short-term breakout trading. He will cover recent trades in NFLX and DDD and help you to gain a better understanding of which setups are more likely to work. If you would like to know more about the breakout setups Steve will be covering in … Read More
Mastering Breakouts: Do You Have a System to Identify and Trade Breakouts?
I read a statistic several years ago that the majority of what traders call “breakouts” fail. For this very reason there are algorithmic trading programs that fade breakouts. And there are some manual traders who love to fade all breakouts as well. There are many others who like to load up in the direction of the breakout 100% of the … Read More
Even One Trade A Day Can Be Over Trading
We had an interesting question the other day: What would be a reasonable range for total number of trades per instrument for an active intraday trader? And is there a different range for something like a stock-in-play vs. SPY or EUR/USD? I’m working on discretionary trading along with algorithmic strategies and I just want to gauge your opinion on when … Read More
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
Why Am I Getting Stopped Out More? (Part IV)
During Part I, Part II, and Part III of this series we identified a new algo on the desks of more traders that may be causing us to get stopped out more. For Part IV let’s offer some solutions. Some ideas from SMB Readers: Trade instruments wich are more liquid or trade on a higher timeframe. Cheers, Markus This is an … Read More
Why I am Getting Stopped Out More? (Part II)
Yesterday we explained a trading algorithim on more desks that may explain why swing traders, retail traders, long-term investors/traders are getting stopped out more on their positions. Today we will explain another part to the algorithm that eliminates one possible adjustment. So as we discussed, say we are long at 30 with a stop at 29.84. One way to combat the algorithm that is … Read More