Day Trading Solutions

Drawdown is the enemy of all investors. Drawdown can reduce some or all your gains and even make you loose money.
The worse thing i experienced as a position trader is when it take you some months to make for example 30% gain, then in one week or two a big drop happen in your positions and you loose all theses gains.

Stock Option Trading Traders or investors that are afraid of drawndown like me can use some techniques to reduce and limit it :

In the next newsletter, we'll go into more detail about the effects of saturation and how it can affect your selection of input preprocessing. Solution Service Recap The Solution Service is a free service that provides daily trading signals and commentary for a select group of stocks. These models can be used directly as part of your trading strategy or used as examples of how to generate your own winning signals. To access it, simply press the "Update Solution Service" button in the TradingSolutions toolbar. Since the last newsletter February, the NASDAQ and the S&P 500 have lost about 2%. During this time, the Boise Cascade model gained over 10%. Overall, the Solution Service models combined to remain around even. Some of the models causing drawdowns will be replaced in the near future.

Currency Day Trading - Use of appropriate money managements techniques, can be helpful but it will not reduce maximum drawdown alot.
- Use of differents profitable trading strategy to diverisfy. I think this is the best way to reduce drawdown.
I am using 5 trading strategy with the one that have the small maximum drawdown
show -20%.
When theses five trading strategy are combinated, the maximum drawdown show only -12%.
- Hedge your portfolio with option,future : If you portfolio is coorelated with an index, sector or industry, even 0.3 corrolation is enought, you can hedge your portfolio by two main ways :
I will take example that will cover the most traders problem (coorolation with index)
1- Buy a put of the index: you must learn well how to trade option.
You must choose an optimal expiration day, a put in or out of the money...
Its not very easy and you need probably some softwares or online tools that help you simulate put variations depending on underlying security changes or days left until expiratYouion changes.
2- Sell an index future : easy to implement it, but the problem here is that one future of russell2000 for example worth 69 000$, you can sell it of course for 690$ but when using future for covering, your portfolio must worth alot of $.
Covering portfolio by option or index may reduce alot your maximum drawdown, but it also reduce alot your gains.

Most people think of day trading as being more risky than swing trading. For those day traders that exit their positions at the end of the day, their risk is greatly reduced because they are not exposed to any losses due to overnight events. Also, potential losses due to events that occur during the trading day can usually be minimized with the use of stop loss orders. TradingSolutions enables you to simulate stop loss trades when backtesting your models.

Financial Software Trading You can combine all theses techniques, choose one of them or don't use any one.
Its all depends on how much risk you are willing to accept.

Online Stock Trading Company Azouz
Trading Systems Blog

Day in your trading, day data for your models. TradingSolutions will then use this data to generate the trading signals for you to follow on the next trading day. If you don't have time to follow the market all day long, but are tired of having "professionals" earned money, Day is the solution for you!

Forex Day Trading

I was perhaps one of the first to enter the Forex when it became available for public trading in 1997. It was a logical extension of my commodities trading career, although the Forex is by far the best market for a whole bunch of reasons. I teach it because I enjoy reducing complex topics into simple solutions. My first love is trading, but now I have the best of both worlds. I can do both.

[ Comment, Edit or Article Submission ]