Category Archives: Trading System Design

A Trading System for Eliminating Overnight Risk Exposure

I have started testing a system for trading S&P 500 stocks that completely eliminates overnight exposure by entering all trades at the open and exiting everything at the close. Signals are based on p-indicator scans followed by discretionary filtering.  Share

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Software for Quantitative Systematic and Discretionary Trading

Trying to discover an edge by randomly backtesting ideas is equivalent to looking for a needle in a haystack. More than 25 years have passed since backtesting software became available to retail traders and the difficulty in finding an edge persists … Continue reading

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Price Action Lab v6.0

The release of Price Action Lab v6.0 was announced on February 3, 2014. The new version of this quantitative trading tool includes a comprehensive update and useful features, like a randomization tool and price series statistics. Share

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Release of Price Action Lab v6.0

We are pleased to announce the release of version 6.0 of Price Action Lab.  This new version offers the most comprehensive update to the software since first released. Share

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Analysis of the Timing Ability of a Machine Designed Trading System

The timing ability of a machine designed trading system for SPY is analyzed using random data.  The performance of a system designed on random data is compared to that of a system designed using actual data. The hypothesis that the system that … Continue reading

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Performance of a Machine Designed System For Trading GBPUSD

A GBPUSD position trading system was machined designed by Price Action Lab on June 5, 2012 and the results were published in this blog the following day. In this post it is shown that the system has returned 14% year-to-date so far, based … Continue reading

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PSI – The Probability State Indicator

A few days ago I was reading one of my old graduate texts on probability theory and noticed a section that I have forgot all about, or to be more precise, I did not pay attention to it at that time … Continue reading

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