The General Principles of a Percent Risk Model
The General Principles of a Percent Risk Model When trading in futures markets, assessing and managing risks is the key to success. One of the prominent risk management models traders use is the Percent Risk [...]
Top Ten Trading System Evaluation Metrics
Top Ten Trading System Evaluation Metrics Successful trading requires an effective and consistent trading strategy. However, developing this winning formula can only be challenging with adequately measuring and evaluating your system's performance. Understanding which metrics [...]
Systematic Advantage #34
Systematic Advantage #34: Systems Cannot Be Deceived A major benefit of systematic trading lies in its deception immunity. Unlike human traders, whose cognitive biases or misleading indicators can easily sway, systematic trading systems are insulated [...]
Irrational Exuberance: A Term that Defined an Era
Irrational Exuberance: A Term that Defined an Era The term "irrational exuberance" has been ingrained in the financial world since it was first coined by Alan Greenspan, former chairman of the Federal Reserve, in 1996. [...]
Risk to Ruin in Action
The "Performance Metrics 101" blog series is geared towards providing traders with the essential evaluation tools they need to assess trading performance accurately. The goal is to provide a complete understanding of these tools, enabling [...]
Escaping Confirmation Bias to Discover High-Potential Trades
The “Trader's Mindset” micro-blog is the perfect source of inspiration to help you stay focused, determined, and motivated on your trading journey. Escaping Confirmation Bias to Discover High-Potential Trades Traders driven by the desire to [...]
Irrational Exuberance
Irrational Exuberance by Robert J. Shiller Messaging and Thesis: In "Irrational Exuberance," economist and Yale professor Robert J. Shiller explores the psychological factors that drive market bubbles, explicitly focusing on the dramatic fluctuations in the [...]
History Behind the Japan Rice Exchange
The History Behind the Japan Rice Exchange: Exploring the Origins of Modern-Day Futures Trading In finance, futures trading has a long and fascinating history. One of the most prominent early examples is the Dojima Rice [...]
Federal Reserve External Communication Blackout
Federal Reserve External Communication Blackout The Federal Reserve, as the United States central bank, directly affects the financial markets, investors, and the global economy. Throughout the year, the Fed communicates its economic outlook, policy stance, [...]
Systematic Advantage #33
Systematic Advantage #33: Systems Can Be Easily Evaluated to Reveal Points of Weakness Systematic trading gives traders the distinct advantage of evaluating their strategies systematically. Unlike discretionary trading, which can be affected by personal opinions [...]