SERVICES
Control their Emotions
“The worse a situation becomes the less it takes to turn it around, the bigger the upside” – George Soros
Emotional control is essential for the professional trader. Human nature makes it very difficult for most of us to do the right thing when we are trading. Objectively we know we should let our profits run and quickly close losing trades. However, in the heat of the moment, most of want to do the complete opposite. Emotional control is not easy but it is essential if you want to trade over the long term.
Planning
I carried out my analysis using a Trading Backtest Model. These are models created using Excel that can be used to test all sorts of trading strategies.
While we are looking at the difference between professionals and amateurs it is worth thinking about what pros don’t do.
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They don’t buy on Hope.
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They don’t over-leverage.
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They don’t buy or sell based on the latest financial news headlines.
Strategy
we committed to helping traders develop their skills and stay ahead of the competition. See how you can learn to backtest your own strategies and get new trading ideas.
We help investors to spend less time researching and more time living. We are here to demonstrate a system aimed to minimize loss during downturns and also beat the market in up turns.
Result
A backtest simulation was performed to help understand the impact of two simple technical metrics applied sequentially to understand their role in an algorithm to rank the top two funds in a portfolio to buy each month.
Active Asset Rotation is a technique to rotate investments into the funds likely to do well for the following month. (or other period) The concept is being talked about quite a bit on investment forums, kicked off by some good books out there such as “The Ivy Portfolio” and “Asset Rotation”.