Category Archives: Trading System Design

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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Using Random Data to Test the Integrity of Machine Learning Algorithms

In a recent blog I argued that the chances of finding a profitable trading algo via machine learning are for all practical purposes zero due to the large data-mining bias. One method of checking machine learning algorithms for the generation … Continue reading

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Fooled by Machine Learning Applied to Trading Algo Development

The chances of finding a profitable trading algo by applying machine learning are for all practical purposes zero. There is always a small probability of success  when using machine learning but one of the problems is that the results cannot … Continue reading

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Developing New Indicators and Trading Systems Constantly is a Dead-End Process

Trying constantly to find a new indicator or trading system that will generate profits is a dead-end process unless there is solid foundation to guide it. Programming and backtesting new ideas constantly hoping to find gold leads to higher probability … Continue reading

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