Many of the best traders use some kind of mechanical trading strategies and rules when trading. “Mechanical” implies that the rules are based on objective rules, usually quantified data. The trader should follow these rules precisely without hesitation or emotion. In this respect, mechanical trading is the complete opposite of discretionary trading. In this article,…
How To Find and Generate Trading Ideas. Once in a while, I receive e-mails from readers wondering how they can generate trading ideas to test. How to generate trading ideas is one of the most important issues for a trader. Furthermore, you need to backtest a lot! Trading requires many ideas In order to find…
You rarely manage to find trading strategies that perform better in live trading than in backtests. Why is it so? This is because of the disadvantages of backtesting. You need experience in backtesting to avoid the many pitfalls along the way. In this article, we look at the disadvantages of backtesting. There are many reasons…
