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Category Archives: Risk Management
How to stockpile a trade position one step at a time
Arguably the single most important skill a trader needs to master in trading any market is to cut your losses short and let your profits run. This is simply another saying of managing risks and maximizing opportunities. However, this is easier said than done. Ever tried to cut your losses short but only to see [...]
4 fundamental entry signs for trading and why they are not that important
Much has been written about when to buy stocks, forex, or other instruments. In fact, it is the topic that is written the most about in trading. As if there’s nothing else to trading than timing your entries. On the contrary, I have come to realize that timing for entries is actually the least important [...]
Adapting to changing market volatility with a statistical position size table
We know that prices can go up or down. We also know that the quality of these ups and downs can be very smooth or very choppy. As such, it’s not surprising that the trend and volatility of a market form the two universal characteristics of a price action. No matter which market you trade, [...]
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Auto bailout shakeout December 13, 2008
To bail. Not to bail. To bail. Not to bail. Friday’s market gapped down big time on news the bailout failed to pass the senate on Thursday night. Then just hours later, rumours were surfacing about the White House stepping in with the TARP money. As of Saturday, FP headline reads White House holds off [...]
4 errors and lessons from being long just before the October 2008 crash
S&P 500 review
I have been waiting to go long in this bear market for a few weeks now, hoping for a bottom soon (first of my errors). Then on week of September 29th, I decided to go all in (error #2). S&P closed at 1099 that Friday. A week later, on October 10th, the Friday [...]
Reducing overall market exposure according to market volatility
With VIX at a multi-year high and the current market turmoil, it seems to be a good time to write about market volatility.
Market volatility is a two-edged sword. Day traders dream of catching the 800 point swing in the YM contracts. Yet, most would lose more being stopped out before giving up and then missing [...]
My name is Paul and I am a full-time engineer, part-time trader. Back in 2000, I deposited my $5000 interest-free student loan with an online broker. Since then, my interest in trading has become an obsession.
Is a $5000 Questrade TFSA trading account cost effective? – Part 1