The Ultimate Oscillator, Day Trading, And Risk
Over the last week, we published many articles. Three of them were about indicators.
The first indicator we looked at was the Ultimate Oscillator, an indicator developed by Larry Williams. Williams is productive and has made many Larry Williams trading strategies.
Our strategy optimization indicates that the ultimate oscillator might be a very good mean reversion indicator:
Here is one equity curve of one of our backtests of the ultimate oscillator (S&P 500):
The next indicator we backtested was the On Balance volume indicator. How does it work? How can you backtest the On Balance indicator?
We believe the ADX indicator is an underappreciated indicator. In a recent article, we looked at one of the components of the ADX formula: DMI - directional movement index:
Can you day trade with a laptop?
We get e-mails from traders wondering if they can day trade with a laptop (!). The truth is, if you do mechanical trading, you don’t need much fancy equipment at all. Here is our answer:
We day traded ourselves (successfully) for almost ten years with this simple and old laptop (Dell Inspiron 2006):
Risk management
Risk management is obviously crucial in trading. Many ratios exist to calculate risk, one of which is the Ulcer Index. We made a brief article explaining what it is:
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