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PowerTools for eSignal
Visually stunning and intuitive to use, the PowerTools trading system automatically generates buy and sell signals for any market and can be used with tick, intraday and daily charts.
BUY RULE: When the trading system is on a sell signal, blue dots will appear above the pink price bars to indicate the stop loss/reversal point; if price *closes* above the dot, a buy signal will be issued.
SELL RULE: When the trading system is on a buy signal, pink dots will appear below the blue price bars to indicate the stop loss/reversal point; if price *closes* below the dot, a sell [...]
Engineering Better Bollinger Bands
Pete asked me what I thought about “Sigma Channels” by Hamzei Analytics. I had never heard of this indicator, but on first glance, it reminded me of Bollinger Bands. It didn’t take long to figure out that they were Bollinger Bands with two additional “standard deviations” plotted. [DOWNLOAD PDF]
The example used in their presentation was the daily chart of BIDU ending October 9, 2007. Here, I applied Bollinger Bands right out of the can in TradeStation 8. The indicator plots +/- 2 standard deviations of the closing prices from the last 20-bars around the 20-period moving average. You can [...]
What do GOOG, CROX, WYNN and JAVA have in common?
Professional traders don’t trade just anything. In fact, trading at the firm is broken down into two broad categories: agency and principal. The specialties are market making, liability, arbitrage, hedging, etc. Pure directional trading, that is, capitalizing on a trend, is rarely done as a principal trade. It is the province of agency trading, that is, for clients and most often, by clients.
Expectancy, Performance and The “R” Word
I did an interview with Dave Mabe of Stocktickr a couple of weeks ago. Dave was kind enough to provide me with a tour of StockTickr. He’s done a great job and I think his trading journal service could be of use to a lot of traders.
The functionality that caught my eye was the ability to examine the overall stop placement strategy: are they too loose or too tight? And then I saw that they were in “R”.
R and “expectancy” go hand in hand. It is the brain child of Van Tharp. If you google [...]
Thoughts on the Kase Dev-stop
Robert wrote:
Thanks for the time and effort you put into your website. It is of great encouragement to me that I am heading in the right direction. . . .Recently I concluded that I needed to develop and maintain a list of high price-high range stocks to trade and backtest. So your latest articles are of great interest to me. I am considering your PowerTools for eSignal and am curious to know does it use volatility outliers to initiate entry signals? I assume it uses something similar to Kase’s dev stop to reverse. Are you familiar with her work [...]
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