The parallels between Taoism and the Algorithm are unmistakable, comforting and instructive.
The process of coding financial market trading systems is fascinating , but they never seem to last very long and their performance is never very consistent.
Myopia, or nearsightedness is a common affliction among those who seek to profit from the financial markets. All too often practitioners, professional and neophyte alike, head straight into back-testing code and fail to think about the big picture. You can only think about the big picture in investment by considering “history”. In financial markets as … Continue reading Investment Myopia
Futures traders generally employ exit points in the form of volatility based stops for each position (established at initiation) determining when to cut a loss short and operating in conjunction with position sizing rules.