Trading Methodology

Managing Subjectivity with Objective Functions

Every day, traders must make decisions: What to trade. When to enter. How large a position to take. When to exit. Whether the system is healthy. Discretionary traders acknowledge the subjectivity of their decisions and draw on experience. Systematic traders use objective functions designed to identify important decision criteria and quantify […]

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Interview with Ed Seykota

By Thom Hartle Abstract / Introduction: Ed Seykota, whose thoughts and insights were chronicled in Jack Schwager’s book Market Wizards, has been involved with trading commodities since the late 1960s. According to Market Wizards, Seykota’s “model account” — an actual customer account — started with $5,000 in 1972 and to date […]

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Information processing and trading

This article reproduced with permission from Brett Steenbarger Here is an interesting observation drawn from the past six months of working with a large group of full-time traders: The most successful of the group never change the displays on their screens. Each morning the same information appears in the same […]

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