Con-tango

I love long legs

It’s been a while that I’ve wanted to talk about legs – the longer they are, the more I like them…
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Implicit learning

I wanted to share with you guys Brett N. Steenbarger’s article Learning to Trade: The Psychology of Expertise, —it’s definitely a must read.

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40 second Boyd

Colonel Boyd of the Air Force was a fighter pilot known for his challenge to fellow airmen. He allowed himself to be placed in a position of tactical disadvantage in an air fight and promised that, within 40 seconds, he would be on his adversary’s tail, ready for the kill. Col. Boyd was never known to have lost this bet, earning him the nickname “Forty Second” Boyd.

During his career, Col. Boyd developed his approach to airborne combat into a comprehensive philosophy of military strategy.  He described combat decision-making as a function of Observing, Orienting , Deciding, and Acting (OODA). 

These processes form loops, with new actions providing fresh observations and requiring renewed efforts at orienting and responding.  The goal of military training, Boyd stressed, is to accelerate OODA loops, becoming more efficient than the enemy.

Its been a while that I’ve come to regard trading as a sports activity. It’s not enough to know what to do, which is hard enough in itself; but, one has to perform impeccably in a very competitive and stressful environment.

And, how can we achieve that?

In a nutshell, submitting ourselves to a harsher and more rigorous drilling of our own trading setups than we would encounter in everyday market situations to build our speed in the OODA process, and to build our confidence too.

A while back, Linda Raschke, Brett Steenbarger and Brace Barber combined their trading, psychology and military training backgrounds to setup a trading workshop based on the grueling military Ranger School.

An interesting article on this subject is found in this article from Brett.

Optimal f

So you’ve got an idea and you want to know how good it is…

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Dollar future?

I really appreciated Menzie Chinn’s presentation (and fredw’s comments) at econbrowser on the theories behind future dollar predictions; it’s a fascinating subject, very relevant to what will happen to the US, and I picked up a couple of concepts. Thanks Menzie.

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Moving averages

Moving averages are another good source of supports and resistance, – as we saw in the previous post’s MA bounce method.

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The MA bounce

This is a very effective play; I’ve never run any numbers, but it’s an above 70% win according to Linda B Rashcke, and I agree with her.
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