If you had been a businessman traveling across Texas in 1891, you might have bought a newspaper and a couple of cigars from a tall, lanky 13-year-old selling them on your train. And as you talked with your fellow travelers about investments, you might have noticed the youth eavesdropping intently on your conversation. If you…
The Volume Weighted Average Price (VWAP Indicator) is a powerful and widely-used indicator in the trading world, particularly among institutional traders and algo-trading firms. Retail traders love to use this indicator which is probably why you are here today! It looks like this on the chart. Vwap indicator Important Note** The VWAP will only show…
Fixed Coupon Notes are a type of equity-based structured security that provides regular income payments (coupon payment) regardless of market conditions. This fixed payment lets it function similarly to a fixed-income product like a bond. The equity base also gives it more upside potential, and the contract gives the investor additional downside protection. Fixed Coupon…
The “short strangle” (not to be confused with the “strangle” or the “long strangle”) is an options trade where the trader sells a call option and sells a put option of the same expiration. Both the call option and the put option are out-of-the-money. It is called the short strangle when these options are being…
📍 So today we are talking about beyond the backtest, better optimization and robustness testing. And look, I don’t know about you, but it’s pretty easy to put a bunch, I think it’s pretty easy anyway, to put a bunch of indicators and rules into some backtesting software and mash the backtest button. And then…
I really like the WalkForward strategy but there’s some challenges with it. Now, depending on what style of trading you do, WalkForward is more or less usable or more or less valuable. If you trade a short term mean reversion system that generates many trades. Then using Walkforward to optimize and re optimize the system…
As options traders or investors, we must be aware of the trade risks and learn how to control them. Whether we are trading a short-term credit spread or investing in a long-term LEAPS, there are times when the trade goes against us. If it goes against us hard enough that we think the trade is…
Achieving Predictable Success: Systematic Trading Strategies for Any Market Condition – Table of Contents Toggle Introduction In the ever-fluctuating world of trading, the one truth that stands the test of time is that predicting the future with 100% certainty is virtually impossible. With over 20 years of firsthand trading experience, I’ve learned that the key…
Couple months ago, I found myself trading with a disrespectful level of disinterest. Win some, lose some, ultimately go nowhere and tread water. No dedication to improving anything about my current form of (deeply-flawed) discretionary trading. I’d get bored and try to fight my way out of small losses by doubling down and trying to…
There are as many ways to adjust an iron condor – many of which involve moving strikes of the options up or down on the same expiration date. Today, we will look at an interesting adjustment that involves adding a time spread with two different expirations to the condor. We will add a calendar at…