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Dump it Here

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soso said:
Hope it's clear.
Click to expand...
Yes, your explanation is very clear thanks. One more question if I may - how exactly do you refer to the unadjusted price? ie. should the AFL read something like "Buy = [unadjusted buy price]"?
 
You may notice this opinion expressed in many trader interviews.

"Consistency in my returns came only after I converted from being a discretionary trader to a system trader."

That's why this thread is so valuable.
 
While this maybe true for those who need structure and don’t understand how to develop an edge/s. ( I’ve not read the thread only your comment Peter )

My beginnings were like many as a systematic trader and still in my Super.
Personally my journey has lead me to un dreamt of R/R and liquidated profit From discretionary trading.

I’d argue that if you can trade profitability as a discretionary trader You’ll be in a much better position to UNDERSTAND and design a trading system/s.
 
Discretionary trading is harder than just following a system with positive expectancy. Because most traders don't even follow a mechanical system with exact rules for any length of time.
 
OK , my belief at what being a consistently profitable trader is,
a) Using a positive expectancy system, (discretionary, mechanical, fundamental or mix).
b) Money management and risk control.
c) Self control to do both a and b
 
Cam019 said:
Nick Radge's Bang-For-Buck.
Click to expand...

@Cam019 has posted about Nick Radge "Bang for Buck" filter that's worthy of a repost in the "Dump it here" thread: https://www.aussiestockforums.com/posts/1087654/

To calculate the Bang-for-Buck filter (Nick Radge)
"In layman’s terms, divide a $10,000 account by the closing price of the stock on any given day. This number is then multiplied by the average range of the stock for the last 200 days. The average range is the distance the stock has moved from high to low each day over the last 200-days. Dividing this number by 100 will convert the result to dollars and cents which in turn indicates the possible dollar return on any given day. The higher the ratio, the higher the profit potential and therefore selecting higher ratio’s will enable stock selection with potential for movement, which is what we want"

"Bang for Buck" PositionScore for Amibroker
PositionScore = ((10000/Close) * ATR(200))/100; //Nick Radge - "bang for buck".

Skate.
 
Cam019 said:
Nick Radge's Bang-For-Buck.
Click to expand...
Gems are everywhere
With so much information we sometimes fall into the habit of speed-reading, failing to absorb what we have just read without realising that's "Gems" are scattered everywhere, finding & applying them becomes an issue, a lost opportunity.

A Gem from Nick Radge's Bang-For-Buck article
"You will therefore find that capital usage in higher-priced stocks is inefficient compared with lower-priced stocks" Nick is suggesting that efficiencies can be garnered by taking the "lowest-priced stock" first. The Amibroker code to test his theory is below.

PositionScore for Amibroker
PositionScorer = 100 - Close; // Lowest priced security is taken first
PositionScore = Ref( PositionScorer, -1 ); // Previous bar (-1 bar)

Skate.
 
Here is another "Gem"
@peter2 explains for a price to move higher others need to find the same opportunity. Systematic trend trading allows this to happen as we all tend to get the same signals. Trends creates momentum & buyers increase exponentially when the current sentiment is bullish. Capturing a confirmed trend is the easiest form of trading, understanding this allows us to capitalise on the change in direction.

Skate.
 
10 simple tips that give Nick Radge the trading edge - https://www.thechartist.com.au/10-simple-tips-that-give-me-the-trading-edge/
Nick Radge is often quoted & for good reason.

A reader wrote
“In trading, what qualities are needed to be your best? In other words, why do you succeed where others failed?”

In reply to the question
Nick had to think long & hard about his trading edge as success is in the eye of the beholder. Nick's 10 simple tips are below.

1. I study.
"Ever since I walked onto the floor of the stock exchange back in 1985 I was enthralled. I spent every lunch break in the ASX book store. Then I found the book store at the Sydney Futures Exchange. So I spent my lunchtimes there. I still study"

2. I don’t just study trading.
I study traders. All the greatest traders have had to walk the same journey as us. It’s important to understand the context of what you’re doing. So I study their track records, processes, history – just about anything that catches my eye.

3. I don’t just study traders.
"I read between the lines. When people read a trading book they see the words but not the true meaning of what is being said. Many times the valuable lessons are not in the written word. Rather what is being alluded to"

4. I have no fear.
"The market can’t hurt me. Position sizing and diversification see to that"

5. I’m only interested in facts and what is practical and useful.
"I have always applied a rules-based approach to trading. Left brain bias. Research, problems and solutions are processed within a structured environment"

6. I make decisions based on good process rather than the monetary outcome.
"So I have no attachment to losses or periods of losses. Which means I can continue to follow the process and achieve my objectives"

7. I accept there is much I can’t control.
"I can, however, control my reactions to events – good and bad. Much of that control comes from having no attachment to the money"

8. I have patience.
"A moderately good strategy applied over the long term will generate more wealth than chasing the latest fad. The Eighth Wonder of the World is compounding. And compounding requires time to develop"

9. I am consistent.
"I am able to place trades every day, week, month, year. Without fail"

10. If all else fails I go fishing.
"That’s my meditation"

Skate's takeaway "Gem"
Nick Radge said: "I read between the lines. When people read a trading book they see the words but not the true meaning of what is being said. Many times the valuable lessons are not in the written word. Rather what is being alluded to"

Skate.
 
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