August 2005 SFO Magazine

The articles from the August 2005 Stock, Futures and Options Magazine (free subscription required) are online now. The cover article is on one of my favorite topics (expectancy) — “Why Large Winning percentages are a bad measure for trading systems”. Here are the other articles that caught my attention:

• Why Large Winning percentages are a bad measure for trading systems – [Editor’s note: In this story, our authors address a key, but often overlooked, component of system trading – money management. Without proper money management, even a good system can churn out poor results for a trader. There are several mathematical variables for system traders to consider in terms of money management that our authors outline within the piece.]
• WHAT RULES IN SYSTEM TRADING? Exit & Entry or Money Management? – Remember the Turtles? Here’s a systematic plan that uses trading capital in an efficient manner and offers a positive expectancy of returns.
• READING THE MUSIC OF THE MARKETS: Day Trading Stock Index Futures – Wondering whether you should take the setup? If you know what you’re doing, the TICKS indicator can help.
• THE CASE OF STOCK SPLITS: When One Plus One Equals More Than Two –
• LONG ONLY FALLS SHORT – CTA assets under management have more than tripled in three years, but what ever happened to managers who traded futures from both the long and short sides?
• Stop the Presses! Use Contrarian Headline Analysis to Improve Your Trading – What’s black and white and read all over? Newspaper headlines against which traders might want to trade.
• Trading the Indicators: Be Your Own Analyst: Understanding Volume
• When Baby Boomers Cash Out: What It Could Mean – How will retiring boomer stock liquidation affect the market? Maybe the best plan is business as usual.