Tag Archives: trading system design

Price Patterns With Delayed Entry

The introduction of a delay in the entry of a position after a price pattern is formed can under certain circumstances act as a filter of price corrections that often follow. In the absence of a delay, positions may suffer an immediate … Continue reading

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The Secret to Profitable Trading

Regardless of your market and timeframe, profitable trading requires that the profit expectation is greater than zero. However, this is a requirement of profitable trading and not the secret as some book authors and academic types argue. The secret is finding … Continue reading

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Curve-fitting and Optimization

The subject of optimization and curve-fitting has received a lot of attention by trading system developers, especially during the last 10 years. There is a lot of confusion about this subject and different views, some even conflicting. There are those who claim that … Continue reading

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Price Action Trading

Price action trading is a trading methodology that, as the name implies, is based on price action. Not surprisingly, as it is the case with many other things, this terminology has been abused and misused by many. Of course, this is a … Continue reading

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N-Bar Win Rate of Trading Systems

The win rate of a trading system is defined as the ratio of winning trades to total trades. The win rate, denoted here by the letter W,  is an important parameter because along with the ratio of average win to average loss, denoted … Continue reading

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