New Trend Following Paper

Hat tip to Mebane Faber for this one: The Trend is Our Friend: Risk Parity, Momentum and Trend Following in Global Asset Allocation One of the conclusions: Perhaps the greatest benefit of trend following is the reduction in volatility that accrues to this approach by...

Backtesting and Cognitive Dissonance

I just read a great blog post by Howard Bandy which you can find here. ... my criticism is of blindly mining a set of data in search of the best fit, expecting the result to be a robust and reliable trading system. If the data being processed is not a financial time...

Classic Trading Rules

Linda Raschke has published a list of what she referred to as Classic Trading Rules that were given to her when she was on the trading floor in 1984. I don't concur with all the rules so I'll list the ones that I try to live by as far as trading is concerned: Plan...