## Computerized Trading: Maximizing Day Trading and Overnight ProfitsComplete with explanatory charts, diagrams, and checklists, a detailed discussion of the use of computerized trading systems draws on the expertise of twenty expert traders, and gives step-by-step advice on strategies and reliable data to both beginning and experienced investors. |

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Page 111

By looking at 200 days starting with the period ending March 13, 1995, we will

use 7 days for the average true range and 65

slippage. Testing during this period produced results shown in the “Initial System”

column in Table 7.2. With the equity curve, we place a 25-day time series moving

average. The equity curve just falters back and forth with the moving average.

Where the ...

By looking at 200 days starting with the period ending March 13, 1995, we will

use 7 days for the average true range and 65

**percent**for the breakout**percentage**. We will also take into account $32 per trade for commissions and noslippage. Testing during this period produced results shown in the “Initial System”

column in Table 7.2. With the equity curve, we place a 25-day time series moving

average. The equity curve just falters back and forth with the moving average.

Where the ...

Page 112

A trend following system may have good results between the 40

correct to make a profit. Traders should always make sure that their trading has a

good

cautious when this number decreases too rapidly. This may signal a change in

the market, ...

A trend following system may have good results between the 40

**percent**to 60**percent**range, whereas a short-term oscillator system may range higher: 60**percent**to 75**percent**. The higher the risk-to-return ratio, the less you have to becorrect to make a profit. Traders should always make sure that their trading has a

good

**percent**profitable for the system that they are trading and should be verycautious when this number decreases too rapidly. This may signal a change in

the market, ...

Page 245

The performance factors of net profit and

comparison of systems. In this case, profit statistics of $408,675, with 70.77

divided by average loss is only 1.18, which is low. The profit factor, which is the

gross profit divided by the gross loss, shows how much money was made for

every dollar lost. A good system has a profit factor of 3 or more. Our example, with

a profit factor of ...

The performance factors of net profit and

**percent**profitable allow for a readycomparison of systems. In this case, profit statistics of $408,675, with 70.77

**percent**profitable trades, are favorable. However, the ratio of the average windivided by average loss is only 1.18, which is low. The profit factor, which is the

gross profit divided by the gross loss, shows how much money was made for

every dollar lost. A good system has a profit factor of 3 or more. Our example, with

a profit factor of ...

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### Contents

PART l | 1 |

Popular Trading Indicators | 13 |

Combining Trend Analysis with Indicator Readings | 30 |

Copyright | |

22 other sections not shown

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