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January 2020

Combining Trend Following with ES-Mean Reversion

Mean Reversion and Trend Following Produces Smooth Equity Curve Expanding to a large portfolio is easy to do if you have a very large account.  Most retail trading accounts can’t cover the margin requirement nor the risk involved with trading many markets.  Take a look at this chart. It trades a very small portfolio of […]

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Testing the Two Least Risky Markets Per Sector

Limiting sector exposure can help limit draw down.  When back testing with most platforms you have to throw a huge portfolio at an algorithm and hope for the best.  Does it matter that all six markets in your currency sector is currently long?  You bet it does.  If a geo-political event occurs then you could […]

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An Explanation of the numPosCurrentSector function

Here is some code and visual aid to help understand how TradingSimula-18 figures out how many current positions are in the same sector as the market that is currently being tested. Now that I know the sector the current market belongs to I can use that information to extract the total positions in that sector. […]

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