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The Blog of Adam H Grimes

musings on markets, risk, and life.

Showing relative performance: simple charts

Yesterday, I discussed some reasons why traders might want to consider looking at, or trading, the relative performance between markets. Today, let’s look at a simple way to display that relative performance, and consider some things that can go wrong. Tracking... read more

Four reasons to trade spreads

Today I begin a short series of posts looking at the tools and techniques of relative value trading. For some traders, this is intuitive; currencies are always valued relative to another currency, and many futures traders focus on spread relationships between... read more

Looking ahead…

Well, looks like 2015 is here with a bang, and markets kick off the year with some volatility. Though we often focus on short term patterns and flows, it pays to keep an eye on the big picture. My friend Andrew Barber, wrote a piece this morning in which he featured... read more

How to draw trend lines

One of the complaints leveled against technical analysis is that tools are primarily visual and subjective, rather than being true analytical tools. There certainly is some truth to these complaints (and I have often been a critic of traditional technical analysis),... read more

The power of the channel

Trendlines are useful. For the uninitiated, it may seem odd to draw lines on charts and to expect them to work, but what we are actually doing here is to create a shortcut (a heuristic, if you prefer.) A properly drawn trendline will reflect both the trend and the... read more

What to do when your stop is hit?

This could, perhaps, be the shortest blog post ever. I could simply answer the question with: follow your rules. Get out. But let’s dig a little deeper. Before we really begin, it’s important to remind ourselves that there are many ways to trade and invest... read more

The most important thing you need to know about commodities

The marketplace is constantly evolving. One of the biggest changes over the past decade is the proliferation of Exchange Traded Products (ETPs) that allow stock traders to trade commodities (and other financial instruments) in a stock account. Much of the traded... read more

5 ways to improve your trading today

Markets are complicated. Market analysis is complicated. Developing a trading system certainly can be complicated. But trading cannot be complicated. The act of placing trades and evaluating results must be as streamlined and simplified as possible. Here are a few... read more

The Trader’s Journey: The Hero’s Journey

This post was originally published on See It Market as part of the Market Masters series. The original post can be found here.] I am a quantitative-discretionary trader. I have made it one of my life’s goals to understand how financial markets move, to understand how... read more

Discretionary and consistent? How?

I’ve been asked a few variations of the same interesting question recently. Here are a few examples: The one thing I keep struggling with is finding an edge I can use in a disciplined and consistent way. How do you define an edge? To me an edge can’t be... read more

Managing your luck

I left you, at the end of yesterday’s post, with some strong evidence that luck plays a big part in your trading results. Now for the good news: you are not powerless against luck. People say many different things about luck, like “luck is what happens... read more

What’s luck got to do with it?

Let’s cut straight to the punchline: the answer is, “it turns out, quite a lot.” Continuing on this week’s series that attempts to break down important technical trading ideas into easily digestible pieces for everyone, let’s take a look... read more

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