Increasing performance in trading š§µ 1) There is little edge in...
kulturdesken@kulturdesken
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Dec 20, 2025
~2 min read
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Increasing performance in trading š§µ
1) There is little edge in trading most stocks.
How do we get rid of the randomness.
Look for relative and absolute strength. Method:
A) A simple screening with a ranking of the top 2-5% RS in different time frames.
1) There is little edge in trading most stocks.
How do we get rid of the randomness.
Look for relative and absolute strength. Method:
A) A simple screening with a ranking of the top 2-5% RS in different time frames.
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B) The Livermore 3 by 3 idea trading the absolute top momentum performers over the last 6 months, based on premise of leading stocks moving for 9-18 months in a bull run.
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C) The persistency idea from @TFollowingMoron with Landry lights setup, which selects stocks with strong persistency in trend, with many days consistently above moving averages. Idea is to capture obvious and consistent buying from institutions.
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2) Keep winners, cut loosers.
A simple idea which is much more powerful than you might think.
"Always sell what shows you a loss and keep what shows you a profit" ~ Jesse Livermore
This is simple pure odds math. It takes most traders years to buy into this powerful idea.
A simple idea which is much more powerful than you might think.
"Always sell what shows you a loss and keep what shows you a profit" ~ Jesse Livermore
This is simple pure odds math. It takes most traders years to buy into this powerful idea.
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3) As a small player use your option to choose when to participate and only swing trade when market is in your favor. Be as selective as you can muster.
A) Only trade stocks long on the first 2-3 days of a run.
B) Only short stocks on the first 1-2 days of a breakdown.
A) Only trade stocks long on the first 2-3 days of a run.
B) Only short stocks on the first 1-2 days of a breakdown.
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C) Only buy investment positions when we've hade a longer breakdown of 3-9 or more months and breadth is extremely oversold.
I prefer %Stocks above 40MA in T2108 in TC2000 or Nasdaq and Russel above 50MA in Tradingview with readings <20 or even better <13
I prefer %Stocks above 40MA in T2108 in TC2000 or Nasdaq and Russel above 50MA in Tradingview with readings <20 or even better <13
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On positiong sizing. Testing seem to show
A) it is more efficient to use % volatility based position sizing
B) variable size positions is preferable
- larger when trading works, smaller when it doesn't
- based on expantancy on the setup
more
A) it is more efficient to use % volatility based position sizing
B) variable size positions is preferable
- larger when trading works, smaller when it doesn't
- based on expantancy on the setup
more
kulturdesken@kulturdesken
Position sizing methods
1 dollar risk
2 percent risk
3 percent volatility
All can be used with Kelly or Half Kelly which is preferable in investing.
All can be used with dynamic allocation based on performance and expectancy.
1 dollar risk
2 percent risk
3 percent volatility
All can be used with Kelly or Half Kelly which is preferable in investing.
All can be used with dynamic allocation based on performance and expectancy.
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Adding a thread about how important Expected Value and variance is to your trading. This is probably the most important part of trading and all probability based games. x.com/kulturdesken/sā¦
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Here is an important thread on trading problems and suggestions on how I'd go about to solve them.
I wish someone had shared this with me earlier in my process
x.com/kulturdesken/sā¦
I wish someone had shared this with me earlier in my process
x.com/kulturdesken/sā¦
