Shaun Overton

At this point in the series, we’ve gone over various characteristics of a solid trading strategy. Last week we even touched on the issue of making sure you are not destroying an otherwise good trading system by making mistakes when putting your strategy into practice.So, what do you do if you build a good trading strategy that you can trade properly under live market conditions? Now it is time to fine tune your trading strategy.Even when you have a profitable trading system, you should still...

Instead of trading dozens of different markets, what if a system simply tried to improve the results of buy and hold index fund investors?That is how Georg Vrba’s Best10 Portfolio Management System works. He uses an algorithm to rank each of the stocks in the S&P 500 weekly, and then invests his funds in the top ten stocks. By segmenting the best performing stocks in the S&P 500, the Best10 System gives its investors exposure to the stocks pushing the index higher, while avoiding the stocks...

Over the past couple of weeks, I’ve been going over characteristics of a solid trading strategy. My desire is to give you different things to look at when building your own trading system, present you with some ideas and make sure you are not ignoring anything important for your trading success.You should realize by now there is a lot involved in a successful trading system and everything needs to work together for you to be successful over the long term.After seeing everything involved, it...

Last week, I referenced Michael Covel’s description of buy and hold investors as victims of Stockholm Syndrome. After thinking about that point for a few days, I realized that Covel’s description isn’t isolated to buy and hold investors. It can be applied to any market participant who believes that their style is the only correct method.Further research on Stockholm Syndrome turned up articles describing investors as loving captives of hedge fund managers and citizens as loving...

Last time I talked about how traders become overly concerned with a high win rate. Obviously, everyone likes winning trades. But what is really going on is they are trying to avoid the feelings associated with loss. In my opinion, loss is just part of trading so it is best to come to grips with losing trades and plan for them. If you did not read my last post, you can do so here: Trading Strategy Win Loss RateTrading System Risk To Reward RatioToday I want to show how win loss rate is not as important...