Article Archive For
AUG2007
Adjusting A Long Call With The Synthetic Straddle by Chris Tyler
AUTHOR: Chris TylerDATE: AUG2007SUBJECT: Options
-
At The Close: New Margin Rules (Part II) by J.L. Lord
ARTICLE SYNOPSIS ...At The Close: New Margin Rules (Part II) by J.L. Lord
New Margin Rules (Part II)
AS I wrote in the June 2007 issue of STOCKS &
COMMODITIES, while the new margin rules are a
powerful addition to retail traders, they do not imply there is
free money to be had. Interest is a key component of the new
margin requirements. Under the old rules, the interest component
was overshadowed largely by the excessive capital
requirements that unnecessarily reduced your purchasing
power. In the new world of risk-based margin, the interest
component now stands out as a significant portion of the
puzzle.
WHY ...
AUTHOR: J.L. LordDATE: AUG2007SUBJECT: At The Close
-
Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
The 10 Essential Of Forex Trading
30 Days To Market Mastery
Around The Horn: A Trader's Guide To Consistently
Scoring In The Markets
Charting The Major Forex Pairs
The Handbook Of Portfolio Mathematics
Option Volatility Trading Strategies
Survival Guide To The Stock Market: How To Prosper In
The Wall Street Jungle
Extraordinary Comebacks...
AUTHOR: Technical Analysis, Inc.DATE: AUG2007SUBJECT: Books For Traders
-
Building A Trading Template by Girogos Siligardos
ARTICLE SYNOPSIS ...Building A Trading Template by Girogos Siligardos
A template makes things so much easier for so many
things, trading included. What should you build into
yours to manage your trading?
roper trade management and money management
are a must for all types of market participants. Even though there are many tradingrelated
software packages, few, if any, provide a
template for monitoring trades based on trade management
(TM) and money management (MM) rules
not related to mechanical trading methods. In this
article I will discuss the main parts of such a template
that can be implemented in Microsof...
AUTHOR: Giorgos E. Siligardos, Ph.D.DATE: AUG2007SUBJECT: System Management
-
Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
SELLING TO BUY
I've heard the term "selling to buy"
when discussing put options. I am not
sure what it means and when to apply it
in my trading.
If you are selling to buy, you are
selling or writing options and are willing
to buy the underlying security. The
most common way of doing this is to
sell puts on stocks you want to own. For
example, if I want to buy a stock for $50
a share and the stock is currently trading
at $50.50, I can sell put options with
a strike price of 50. Depending on how
much time is left until expiration, I
might get a few hundred ...
AUTHOR: Tom GentileDATE: AUG2007SUBJECT: Explore Your Options
-
Fixing The Flaws In Fixed-Fractional Position Sizing by Christian B. Smart, PhD
ARTICLE SYNOPSIS ...Fixing The Flaws In Fixed-Fractional Position Sizing by Christian B. Smart, PhD
Fixed-fractional position sizing is a time-tested method for
money management, but in the long run, it will never achieve
system expectancy. Here's how you can fix this flaw.
Fixed-fractional position sizing is a popular
and time-tested method for money management.
In the strategy, a fixed percentage of
equity is risked per trade. The formula is
given here as:
Amount risked per trade = Equity * f
where f is the fixed percentage of equity risked per trade.
Fixed-fractional money management is an intuitive method
i...
AUTHOR: Christian B. Smart, PhDDATE: AUG2007SUBJECT: Money Management
-
Forex Focus by James Chen
ARTICLE SYNOPSIS ...Forex Focus by James Chen
Support & Resistance Precision In Forex
Currency markets tend to follow support & resistance levels. Use
those levels to identify entries and exits, and to apply risk
management.
Many foreign exchange traders rely on the accuracy
of support & resistance levels so evident on currency
price charts. Some of these traders will eschew the use
of mathematically derived indicators or back-tested systems
as primary trade decision tools, preferring instead to allow
their manually drawn lines to dictate entries and exits.
BACK TO BASICS
There is much to be said for this back...
AUTHOR: James Chen, CTADATE: AUG2007SUBJECT: Forex Focus
AUTHOR: Dan O'NeilDATE: AUG2007SUBJECT: Futures For You
-
Interview: Risky Positions With Keith Fitschen Of TradeSystem, Inc. by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Interview: Risky Positions With Keith Fitschen Of TradeSystem, Inc. by Jayanthi Gopalakrishnan
Keith Fitschen has been developing technical trading systems for the futures
markets for 20 years, actively trading his systems. His initial research was on the
quantification of curve-fitting in system development and resulted in a methodology
that relates the degree of overfitting to the number of trades in the development
sample. With this method he developed the mechanical system Aberration. Developed
in 1986, it was commercially released in 1993 and has been feted as one of
the top 10 trading s...
AUTHOR: Jayanthi GopalakrishnanDATE: AUG2007SUBJECT: Interview
-
Letters To S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc.
METASTOCK CODE FOR
MOVING AVERAGE CROSSOVERS
Editor,
I am looking for the MetaStock code for
Dimitris Tsokakis' article, "Anticipating
Moving Average Crossovers" (February
2007 S&C). Your Traders' Tips
section of that issue refers readers to your
website for the rest of the MetaStock
listing. Could you please advise where I
may find the complete listing?
KEN KOSCHEL
Complete code from the February 2007
Traders' Tips section can be found here:
http://www.traders.com/Documentation/
FEEDbk_docs/Archive/022007/
TradersTips/TradersTips.html
Or, to n...
AUTHOR: Technical Analysis, Inc.DATE: AUG2007SUBJECT: Letters To S&C
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: AUG2007SUBJECT: Opening Position
-
Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
ON PIVOT POINTS AND DAYTRADING
Is there any relationship between pivot
points and daytrading? I believe there is,
but I do not know what it is. Could you
give me some help?--robinxing
We use the pivot points of the futures in
our entry/exit decisions during the day in
this way: We consider the trading troughs
between pivot and R1 or S1, S1 and S2,
and so on, to be "mini" support/resistance
levels. (We use resistance levels 1, 2, 3,
and 4, and support levels 1, 2, 3, and 4.)
They tend to be a self-fulfilling prophecy,
since the large futures traders on the floor
(and off) te...
AUTHOR: Don BrightDATE: AUG2007SUBJECT: Q&A
-
Traders Tips' by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders Tips' by Technical Analysis, Inc.
Editor's note: Most of this
month's collection of Traders'
Tips are based on
Giorgos Siligardos' article
in this issue, "Building A
Trading Template." Other
contributions are on a topic
of the software developers'
choosing.
TRADESTATION: BUILDING A TRADING TEMPLATE
Giorgos Siligardos' article in this issue, "Building A Trading
Template," describes using an Excel spreadsheet for managing
a portfolio of stocks. The trading rules are roughly based
on the trading rules developed by a group of traders known as
the Turtles. The rules allow for only long p...
AUTHOR: Technical Analysis, Inc.DATE: AUG2007SUBJECT: Traders' Tips
Traders' Resource: Mutual Funds by Technical Analysis, Inc.
AUTHOR: Technical Analysis, Inc.DATE: AUG2007SUBJECT: Traders' Resource
-
Trading Renko Charts by Suri Duddella
ARTICLE SYNOPSIS ...Trading Renko Charts by Suri Duddella
This charting technique can be used to display trends that
may not be that obvious in a bar or candlestick chart.
Renko charts were invented by Japanese traders
hundreds of years ago and named for renga, a
Japanese word for "brick." How are they different
from bar or candlestick charts? First of all they are
visually attractive, making it easy to filter noise and isolate trends. They show symmetry and are effective in determining
the major trend and support & resistance areas. Renko
charts are also efficient in signaling trend-reversal patterns.
WHAT AR...
AUTHOR: Suri DuddellaDATE: AUG2007SUBJECT: Chart Patterns
Working Money: Builders, Lenders: Next In The Falling Knife Saga by Matt Blackman
AUTHOR: Matt BlackmanDATE: AUG2007SUBJECT: Working Money
Working Money: Moving Average Trios by David Penn
AUTHOR: David PennDATE: AUG2007SUBJECT: Working Money