Use Algos to Fight The Algos

Every trader’s resolution for this year should include a transition to a mode of operation that is compatible with current market environment. Among other things, this includes abandoning random discretionary trading and adopting a systematic framework. When human traders start a fight with algos, chances of winning are slim. I offer some basic guidelines for this transition.

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Price Action Lab Blog Strategies Performance in 2016

Price Action Lab Blog Blog offers signals generated by three strategies and also has a strategy developed via machine learning tracked in the Quantopian platform. Below are performance details for 2016.

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Market Signals Update – January 2017 [Premium Signals]

Market signals report for January 2017 with strategy performance for 2016.

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Momentum Exuberance In Dow Industrials A Warning Sign

The RSI(14) of DIA ETF has stayed above 70 for 25 days, the longest such period since its inception. The previous longest period was 20 days and was completed before the stock market entered its longest consolidation in last 66 years followed by two corrections.

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Trading Vs. Investing: The False Dichotomy

There are many who confuse these two: trading and investing. Some even offer trading disguised as investing. Even worse, some try to convince us that we should do one or the other. This clash is mostly motivated by marketing and an effort to increase passive investing fund inflows.

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CTA Woes Continue in 2016

CTAs have been unable to profit this year according to official sources, adding to a long streak of disappointing returns in recent years. This is despite some notable downtrends in bonds, gold, commodities and currencies this year. Based on statistical analysis we claim that top 20 CTA past returns are probably random.

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Weekly Market Analysis – Monday, December 26, 2016 [Premium Articles]

Weekly premium reports include a market recap with commentary, performance report of selected ETFs and portfolios, technical analysis with unique indicators and directional probabilities based on machine learning. This report includes a backtest of a recent S&P 500 pattern.

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Merry Christmas. Buy And Hold Is Post Hoc Market Timing

Trading strategies attempt to time the market ex-ante by generating entry and exit signals. Buy and hold is post-hoc market timing. There is no way to avoid market timing, whether active or passive. The claim that buy and holders do not time the market is made in “attacking a strawman” involving market timing.

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