Trading Your Equity Curve

What Is Equity Curve Trading A common topic, more so among automated traders, is trading your equity curve. In other words, having some tool to know when to trade, when to not trade and when to adjust position size. For example, when do you know if a drawdown is normal or displaying some abnormal behavior?…
Read more

Volatility

Volatility is one of those words everyone knows, but not everyone understands. "...Volatility refers to the amount of uncertainty or risk about the size of changes in a security's value. A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of…
Read more

Living Through A Drawdown

What better time to discuss life in a drawdown, then when you are actually going through one. Which I currently am. Surprise. I am not claiming to be perfect. I am not claiming to have a system that never loses. I guess I am claiming to be normal. The system in drawdown is my ZB…
Read more

Backtests

Should Mark Twain have included backtests when he said "lies, damned lies and statistics?" Many would argue yes, and many would be right. After all, it's insanely easy to doctor backtests. Whether done on purpose or simply due to lack of knowledge, erroneous backtests are very common. And perhaps that is why they get such…
Read more