Integrating Discretionary Trading Skills With Quantitative Strategies










There is a number of very good research services and platforms that allow traders to identify occasions when there is a directional trading edge in markets.  The common thread among these is that they identify a set of conditions that are present in today's market that are distinctive and meaningful.  They then examine past occasions when these conditions have occurred and determine whether the market has moved a particular way in the next time period with statistically significant odds.  This is known broadly as event research.

For example, if the SPX makes a new 12 month high for the first time in two years, we could explore whether, in the past, this has reliably led to future gains.  Or, if we have a Fed meeting on Day 1 and close that day weak, we can identify the odds of continued weakness over subsequent days.  Or, if the NYSE TICK hits a very strong level of +1000 during the opening 15 minutes of the trading, we can assess the odds of this being a trend day to the upside.
In most of these cases, we're using historical studies to see if there's a directional part during the approaching duration in the market.
Seven carriers of such research that I even have observed to be reliable and useful are (in alphabetical order):

Quantifiable Edges
Trade Ideas

We can also conduct our own event research, as my recent post illustrates.  Such studies do not require advanced mathematical or programming methods as one might need for a fully developed trading system. The goal here is not to become a systematic trader, but rather to identify promising hypotheses for the coming trading period.  When experienced discretionary traders possess one or more valuable historical hypotheses for the coming day or week, they can then track news flow, price action, and overall market behavior to assess whether the hypothesized move projected from market history is actually playing out right now.  In other words, you look in real time to see when there is a reliable "setup" or catalyst that allows you to trade a historical edge with well-structured risk/reward.
History doesn't always repeat itself, but knowledge of history generally beats ignorance.  Understanding how markets have moved in the past under the conditions we see at present can keep us out of bad trades and help us focus on promising ones.  It's an important way that discretionary traders can make use of quantitative strategies without having to do the data collection and coding from scratch.  And it can become an important part of our market preparation.

Further Reading:

The Psychology of Quantitative Analysis

TraderFeed Home Page and Index

forex trading forex factory what is forex what is forex trading forex market forex scams forex brokers forex com forex market hours forex news forex trading app forex trading for beginners how to trade forex best forex broker forex charts forex signals is forex legit pips forex forex investment ig forex forex calendar forex trading strategies hdfc forex card login best forex trading platform forex brokers usa forex cargo forex demo account forex exchange forex patterns forex reddit forex trading scams how to start forex trading tradera forex what is forex trading and how does it work what is leverage in forex best forex broker in usa best forex trading app forex app forex compounding calculator forex currency forex factory calendar forex profit calculator forex tracking forex trading platforms forex vs stocks learn forex trading lot size forex no nonsense forex td ameritrade forex forex cargo tracking forex definition forex login forex meaning forex pip calculator forex ranks forex reviews forex time zone converter forex time zones forex trading for dummies forex trading hours forex trading reddit free forex signals iml forex is forex trading profitable what is spread in forex best time to trade forex forex calculator forex candlestick patterns forex chart patterns forex com login forex correlation pairs forex day trading forex economic calendar forex for beginners forex session times forex stock forex strategies forex trader salary forex trading meaning forex trading reviews is forex legal live forex charts scalping forex us30 forex what is forex market what time does the forex market open when does the forex market open divergence forex forex com review forex factory news forex for dummies forex hours forex indicators forex market times forex pyramid scheme forex quotes forex sessions forex trading course forex trading signals

Iklan Atas Artikel

Iklan Tengah Artikel 1

Iklan Tengah Artikel 2

Iklan Bawah Artikel