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In my last post I discussed a popular definition of a trading edge that can be found in the trading literature and discussed in various forums.

There are many references in trading literature to expectation as the “trading edge”. However, there is no sufficient sample to determine the expectation and what they refer to as an edge is the historical average trade.

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 ...

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 ...

About 11 years ago, I gave a presentation in a conference in New York City as an invited speaker. The audience was mostly comprised of inexperienced traders. A good part of my presentation was on the subject of risk of ...

Back-testing tells us how a system performed in the past and that is all. If one assumes that systems that did not perform well in the past have high probability to fail in actual trading then back-testing can be turned ...

I cannot discount the possibility that Astrology may provide clues for occasional market timing but as far as contributing to a systematic methodology I cannot see the implied causality that could facilitate that. Markets are driven by financial facts and expectations ...

Blog coming soon!