Futures Truth Mag: Issue #3/2016
False Profits: Exposing Bias with Independent Performance Audits (Part III-Personal Biases & Emotions)
Andrew Danik continues with his "False Profits" series, this time focusing on personal biases and emotions. He explains the concepts of investing, trading, betting and gambling. Understanding these terms helps show the similarities that ties them all together and associated human emotion that goes along with them. Eliminating all emotions, if that is possible, is the ultimate goal.
Algo Trading Beats Emotions
Chris Vermeulen discusses the concept of Algorithmic Bias Mapping in his article. All trading algorithms experience draw down and as Algo. traders we must follow the system down this unpleasant path. However, Chris explains there is another purely algorithmic based overlay that can be utilized to scale allocation to a market, algorithm or even a portfolio of algo/markets back when a predefined confidence level begins to lessen. Adaptive allocation based on times when we "fail to fail" or "fail to succeed" can have a tremendous impact on a trading plan's success and its associated equity curve.
And, as always....
Top Ten Tables (updated through July 2016)
Systems Ranked by Commodity
Master Performance Table (200+ systems currently tracked)
CFTC Enforcement Press Releases