A systematic trading approach: 1 year, over 1000 trades, and nearly a 300% return…….

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A systematic approach to trading

The FinTech arm of our business started in mid 2016, built on the foundations of many years of experience working for banks, brokers and trading houses. We take on many different assignments in this space: We design, test and build systematic trading systems and analytical tools. After initially coming up with an idea for a technical analysis based trading system, testing it on a couple of assets and getting amazing backtest results toward the end of 2016, we decided to do something a bit different and create an all encompassing systematic trading approach that we could trade for ourselves using our own money, and truly put our ideas to the test!

We decided from the outset, that once live, we’d run it for one whole year and then publish what we found. This article outlines our year of trading the system, the background to it, issues and problems we faced and most importantly, the end financial result (which is sort of given away in the title!)

 

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Technical Analysis (Part 24) – Putting it all together: Risk & Trade Management

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Successful trading is about helping yourself and putting the ‘odds’ on your side. In part 23 we looked at strategy, design and implementation. This week, we’re going to take a brief look at an often forgotten and overlooked use of technical analysis: Risk & Trade Management. If you are a raw fundamentalist, or don’t want to use technical analysis to make trading execution decisions, that’s fine, but I think you’re being foolish if you don’t consider using technical analysis to improve your risk & trade management processes. [Read more…]

Technical Analysis (Part 5): Point and Figure charts

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Last week in Part 4, we looked at candlestick charts. This week, we look at one of the oldest charting methods popularised in the West: Point and Figure charts. To some, Point and Figure charts look like a glorified game of noughts and crosses! To others they simply make no sense or serve no purpose. Unfortunately, the interest in Point and Figure charts is on the wane, which is a shame because  if you dug a little deeper, they can be a highly effective charting approach that you could use for your trading and investing. They can offer flexibility and a different perspective on price action. [Read more…]

Risk & Trade Management: How Not to Lose Your Money Trading

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Risk & trade management are two important areas of trading that you should have firmly sorted before you start to trade. Whilst they each apply themselves to trading slightly differently – risk management at a macro level and trade management at a more micro level – their objective is essentially the same. [Read more…]

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs with any provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.