The Holy Grail

Systematic trading is not the holy grail everyone is searching for. It will not guarantee success in this business. And it will not print money. Unfortunately there are people out there who will say the opposite. They will imply that trading is now simple thanks to the use of a computer for execution. I'm sorry…
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Systematic Benefits

Today represents an amazing time in the world of computer based systems. Whether you are a trader or investor, the barrier to entry has never been lower to develop your own system. That in itself is reason enough alone to start writing your own code. But the benefits far exceed having a computer execute trades…
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Filters

Filters were designed with one purpose, to remove impurities. And the same can be said when applying filters to a trading strategy. In practical terms though, what does that mean? What impurities are there in trading strategies and what type of filter is used to remove them? Filters in the trading sense need to be…
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Average Returns

The idea of average returns is in many ways a grand illusion. For example, use a baseball analogy. A player with a batting average of 300 historically has three hits for every ten attempts. Does that mean that after seven consecutive failed attempts to get on base, the eighth attempt is a sure thing? One…
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