Charting | JUN 2006
Trade The Chart, Not The System by Anthony Trongone, Ph.D., CFP, CTA
Stocks & Commodities V. 24:6 (44-47): Trade The Chart, Not The System by Anthony Trongone, Ph.D., CFP, CTA This is why you need to constantly monitor the performance of your trading system. Changing economic conditions can affect the performance of any trading system. Therefore, developing the discipline to periodically monitor the performance of your systems becomes a constructive exercise, one that can increase profits or prevent loss. The proactive trading system (referred to as “GIA,” which stands for “generating interactive assets”) is a successful strategy for taking a position 60 minutes after the opening of trading. As well as discuss its effectiveness, I will also describe how to proactively react to the running performance of any trading strategy. By tracking your system’s performance, you can fine-tune your trading strategy to existing price movements. This will give you the opportunity to either go short when your system is working or go long when its success fades. TRADING THE NASDAQ 100 This article investigates the price movements of the NASDAQ 100 index (QQQQ) over 514 trading days from January 30, 2004, to February 10, 2006 (Figure 1). With a daily average of 94.5 million shares, NASDAQ 100 findings are generally an accurate barometer of trading technology stocks with active volume. The purpose of this popular exchange traded fund (ETF) is to replicate the movements of the NASDAQ 100, and since the QQQQ has a near-perfect correlation with the NASDAQ 100 futures, you can actively trade it as its replacement.
by Anthony Trongone, Ph.D., CFP, CTA
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.