Category Archives: Trading System Design

Developing Trading Systems Based on a Large Number of Price Patterns

Suppose that you have a large number of price patterns that you have tested and decided to trade. How do you develop a trading system based on them?  Apparently, there are many ways of doing this that offer increased flexibility … Continue reading

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Why You Should Avoid Purchasing a Trading System

You should avoid purchasing a trading system because there is usually no way of knowing how it was developed. There are many “trading system outfits” that use data-mining to generate systems they claim are robust. However, depending on how this is done, … Continue reading

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Fooled by Persisting Market Conditions

This blog is related to the previous blog on the RSI(2) but also conveys a much more general message about the impact of persisting market conditions and how they can fool trading system developers. In the case of the RSI(2) it … Continue reading

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Profiting From the Losers

Trading system developers usually look for profitable algos that stay profitable but one could instead look for profitable algos that have high probability of turning unprofitable and then trade against them during a period of mean-reversion. Share

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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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Price Action Lab Software

Price Action Lab™ (PAL) is a tool systematic and discretionary quant traders can use to discover algos and identify high probability setups based on pure price action. This software was developed after applying Occam’s razor to price action analysis. Share

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Free Demo of Price Action Lab Software

There is now a free demo of Price Action Lab available for download. Price Action Lab is the most advanced software for quantitative discretionary and systematic trading based on parameter-less price patterns. Share

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