To most people e-mini trading is pretty serious business; which is to say there isn't a whole lot of levity in most e-mini trading rooms. Nope, this is a solemn experience and you better not get caught cutting up or having a good time; after all, we are talking about real money here; cold hard cash, moolah, real greenbacks and the stuff of disappointment, letdown, heartbreak and failure. More than anything, we deal with pure, all American, unadulterated greed.
What Is Quant Trading:
As financial securities become increasingly complex, new breed of rocket scientists have grown to price these complex mathematical models and enhance them to generate profits and reduce risk. These experts are know as quantitative analysts, or "Quants". Quant Trading experts expose inefficiencies in markets using sophisticated computerized algorithms. With quant trading we say if you can't quantify your edge then you don't have one.
The Most Valuable "Commodity" A Trader Can Have:
This article is about how valuable "experience" with my trading strategy has been to me and why it is so important. The more experience you have, the more potential you have for becoming a consistently profitable trader.
Quantifying Market Inefficiency or Behaviour Beyond Randomness:
So what is an algorithmic/quant trading system? When we day trade we have three things to every positions; entry price, stop price and target price. What determines each of these factors is a human decision based on an estimation that our entry will make a profit. Some traders have a set plan, other trade from there gut, but regardless of trading style each entry either consciously or subconsciously is based on definite rules. We are aiming to model this market behaviour and quantify it into a series of rules. Whether you are working on technical analysis, fundamental news or price action we aim to breakdown your entries into a series of rules which can then be tested against past data or data on various markets.
E-Mini Trading Lagging Indicators - Are They Worth the Trouble?:
If you have read any of my articles, you will know that I am not a big fan, or even a fan, of lagging indicators, especially if you are an e-mini scalper. In my mind, it's like an Olympic 100 m runner starting 10 paces behind the rest of the field. Yet, lagging indicators remain the number one teaching tool in e-mini trading.
What Is the Best E-Mini Trading System for You?:
In recent years the number of new e-mini trading systems available on the market boggles the mind. Unfortunately, there is nothing new in most of these "breakthrough" systems as they are variations on an old theme that dates back to 1978. In my experience, a couple of these systems are suitable for swing trading but nearly all are substandard choices for e-mini scalping.
Trade on Facts, Not on Hope:
Most traders lose and go bust because they trade based on hope and fear. Knowledge is key to winning at trading. When you trade based on knowledge, you will know when to enter and exit and act accordingly.
E-Mini Trading: Should You Trade Candlesticks, Heiken-Ashi, or Better Renko Bars?:
I get most of my e-mini trading ideas from price action; then use real time indicators to confirm or decline a trade. There are guys that trade pure price action devoid of any confirmation and I have decided that they are probably smarter than me or fibbing about their trading skills. Either way, it's really doesn't matter to me. That being said, you will have to decide how you want to display your price and we are going to look at 3 methodologies and break them down a bit.