Category Archives: Risk Management

The Perils of Day and Position Trading in Zero-Sum Markets. Part Two: Futures Position Trading

This is the second part of a four part series on the perils of day and position trading in futures and forex markets. In this part, the results of a simulation of a large number of random trading systems in E-mini … Continue reading

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How I Beat the Market Over the Past Six Months

This is a brief account of how I managed to beat the S&P 500 buy-and-hold return over the past six months, the mistakes I made and why I will not do it again this way. Share

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How Some Signal Providers Overstate Performance

In most cases it is not fraud but a result of incompetence. However, it is a fact that some signal providers do overstate performance with unrealistic calculations while others do not report it at all. Share

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Uninformed Investors Will Lose

The markets rarely reward uninformed investors. Uninformed investors in the tech sector suffered devastating losses in 2000 and the same happened to those that were not informed about the coming debt crisis in 2008. History often repeats itself and the … Continue reading

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Price Action Lab Diversified ETF Portfolio Performance for 2014

The Price Action Lab diversified ETF portfolio invests in SPY, TLT, GLD and DBC at the beginning of each year with fixed weights that are calculated as of the close of the previous year and no more transactions take place … Continue reading

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Russell 2000 Rally May be Related to Smoothing of Hedge Fund Returns

The Russell 2000 index performance was diverging from that of large caps for the most part of this year but in the last eight trading days this small caps index has gained 7%. This could be partly attributed to hedge … Continue reading

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Price Action Lab Premium ETF Trading Performance for 2014

The ETF short-term trading system was started on September 2, 2014 and achieved a net absolute return of 7.6% for the year with a total return for SPY in the same period of 4.9%. The performance was based on a fixed percent … Continue reading

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