What are the Five Components of Successful Trading? Adam Hewison details these five points in a recent, brief educational video. I’ll give you a hint – Adam’s #1 Rule, as is mine, is stated “Know Your Risk!” What are the other four components? Adam writes: In this edition of Traders Whiteboard, we will be looking…
Earlier, I discussed Win Rate as a factor of Fixed Stop-Loss and Fixed Profit Targets, and I showed how it was easily possible to achieve a 95% win rate… but now it’s time to see if these outcomes lead to net system profitability. Please refer to the earlier post for the full descriptions and parameters…
Popular stock Dry Ships Inc (DRYS) recently formed a major trend exhaustion (possible reversal) pattern that is worth further study. Let’s look at this pattern and what it may mean for the stock. Price rapidly increased from $20 to $130 throughout 2007, while collapsing at the end of the year, which brought us to the…
What is the larger relationship between your stop-loss strategy and your profit target method? I tested three strategies and evaluated the change in win rate – % Profitable Trades – across 400 tests per strategy and present the abbreviated results here. First, let’s define the methods: DIA Daily chart from Jan 1 1998 to May…
Yesterday, I examined the 10 Year Note, commenting that it had broken resistance. Now, let’s look at two bond funds to see how prices are being affected, and also view a strong correlation between the 10 Year Note Yield and the S&P 500 Index. First, the TIPS Bond Fund: iShares writes: The iShares Lehman U.S….
Let’s do a quick check on Wachovia Bank and the XLF Financial Index to see what interesting development has happened this week. First, Wachovia’s (WB) weekly structure chart: Price made a new intra-week low this week, testing just below $24 per share, but it did so on a developing positive momentum divergence (not drawn). The…
If you’re following the intraday charts, momentum seems to be diverging to the upside as selling pressure is waning and buying pressure seems to be picking up, as the shift from supply to demand is comfortably shifting. Let’s look at the 30-minute chart of the DIA: Although it’s clearly a short-term shift, we see at…
Adam Hewison posted a ‘logic grid’ video regarding the INO Television Educational services, which I use and recommend for traders. Entitled, “INO TV, the Logical Choice,” Adam describes the benefits of the videos that comes with membership (only $99 per year or $49 per quarter) that grants you access to over 500 video seminars (90…
Often, the Foreign Exchange currencies markets (FOREX) offer cleaner trends and simple set-ups for astute traders, and I wanted to show an example of one of these clean examples that occurred last night on the Euro/US Dollar cross. (Click for full size image) Even if you don’t trade FOREX, the patterns in this chart are…
When testing a trading strategy or idea, it is helpful to know what the Win Rate (also known as the %Win) is, and what factors might affect this portion of your results. But before we get too deep into the type of strategy you’re examining, it’s important to note the relationship between your profit targets…