Article Archive For
Gordon Gustafson
Do Equations Tell The Whole Story? by Gordon Gustafson
ARTICLE SYNOPSIS ...Do Equations Tell The Whole Story? by Gordon Gustafson
Success in systems trading depends on having good trading systems and good money management practices. Optimal f can help you.
Once you have a good trading system, wouldn't it be wonderful if you had an equation you could plug into a system to discover the perfect amount to risk on each trade? All you'd have to do would be to plug the results
into a risk calculation and relax, knowing that the chances of ever losing again were practically nil.
It's a nice idea. But the fact of the matter? Such equations could easily lead you astray....
AUTHOR: Gordon GustafsonDATE: JUN 2002SUBJECT: Money Management
Price Persistency by Gordon Gustafson
ARTICLE SYNOPSIS ...Price Persistency by Gordon Gustafson
Interested in measuring a short-term trend? Here's an
indicator you can use.
For years, academics have made the case that
price movement is random: future price
changes are unrelated to past price changes.
Although they are random, runs occur in any
series of data. Knowing something about
these runs can add valuable information to
any trading program.
WHAT IS IT?
Price persistency is the number of days that a market continues
to close either up or down. It's another term for a market run.
As an indicator, price persistency is a measure of a very short-...
AUTHOR: Gordon GustafsonDATE: JAN 2002SUBJECT: Statistics
Which Volatility Measure? by Gordon Gustafson
ARTICLE SYNOPSIS ...Which Volatility Measure? by Gordon Gustafson
Is it true? Is average true range, an approximation, superior to standard deviation, the most beloved of quants, as a measure of volatility?
Many traders use some measure of volatility to
generate signals in their trading. For instance, one common entry technique is to buy when the price breaks outside a certain range of the volatility of the recent price action, either to the upside for trend following or below for countertrend systems. Another common use for volatility is in the construction of trailing stops. An exit signal might be generated ...
AUTHOR: Gordon GustafsonDATE: JUN 2001SUBJECT: Trading Techniques