As an ongoing feature of this website we will describe the approaches taken and showcase the performance results of a number of Programs that we are currently testing under live trading conditions on the MT4 platform.
Blog
Welcome and Introduction to Backtesting
A short video introducing you to the Traders Outpost and describing some of the tools we produce to assist traders in exploiting arbitrage opportunities.
The Case for Systematic over Discretionary Trading Styles
"You need many trials to expose biases the same way Vegas needs many bets to exemplify the fact that their long-term edges are ultimately insurmountable". Art Collins in In Beating the Financial Futures Market (Wiley, 2006) makes a powerful case for systems trading over discretionary trading. The following thought provoking extract was posted by Brenda Jubin in… Continue reading The Case for Systematic over Discretionary Trading Styles
Welcome to the Knowledge Bank
An an ongoing feature of this website we thought we would include a knowledge bank that comprises links to the valuable advice and research that have helped over the years to shape the philosophies, ideas and practices that you will find on our website. We hope you like this segment of our website as much… Continue reading Welcome to the Knowledge Bank
All you need is a Small Edge – But Lots of them
....and they say you don't learn much at the casino. Richmond Quantitative Advisors expound on the power of a small edge.
Why Backtesting is Important for Price Followers
Here's a question for you. If trend traders talk about following price rather than predicting it, then why do they feel that backtests are important? Well, as counter-intuitive as it might seem, a trend follower does not backtest to estimate their future profitability but rather conducts backtests to determine risk management thresholds before stepping into… Continue reading Why Backtesting is Important for Price Followers
How Do I Assess whether my Strategies are Curve Fit or Not?
This is perhaps the most important consideration to assess in testing the long term performance of your strategies. It is very easy these days to generate wicked equity curves that ascend in a linear way to the stars....however fall off the cliff as soon as you take them to the live trading environment. What you… Continue reading How Do I Assess whether my Strategies are Curve Fit or Not?