At last! We’ve made it to the mean-reverting part of the series, starting with our focus on equities and their mean-reversion habits. So, here’s the deal. We’re going to keep it simple, just like in the previous three posts, and start from the ground up. Over the following series we’ll culminate in a simple, straightforward […]

## Dangers of Backtesting, Over-Leverage and the Need for a Protective Stop

Backtesting and Over-Leverage are the bane of any systematic trader. A shout out to Peter who raised both these points on the previous article in the series: Trading Numbers So, what are the two issues we’ll address in this week’s article: Look ahead bias, and is it really that bad? Kelly is always touted as […]

## Taking Control of Your Trading Numbers

Taking Control of Your Trading Numbers – that means actually being able to replicate the results that others produce. It’s the only way to be sure that you know what’s going on. Well, many people got back after last week’s article asking about the details of the calculations as well as about some of the […]

## Building Consistently Profitable Trading Systems – Principles of a Successful Trading Approach, Part 1

Would you like to build consistently profitable trading systems from scratch? This article series does exactly that. Here are the steps which we’ll work through: Define the underlying principles of a successful trading approach Determine the assets which obey these principles Determine rule sets for trading these assets Work out a straightforward portfolio construction method […]

## GBP, Brexit, and Fundamentals

I’ve been asked lots of questions as to how to determine the next moves in GBPUSD. There have been many arguments for a bottoming out at the current levels, as well as for a continuation given the strength of the downward move experienced post Brexit. In this article I’ll try to get a handle on […]