2006 Dec 18 - Mon

The Stock Bandit

I've added a link to an interesting article by The Stock Bandit regarding trading with multiple positions. I've been attempting to design a system based upon handling single positions. But with multiple indicators sometimes signalling different directions, I've been at a loss (in more ways than one) to figure out which indicator to believe at any one point in time.

I've slowly been realizing that by handling multiple positions, multiple scenarios can be played out at once, with each scenario adding and removing positions to the overall portfolio.

Obviously, handling multiple positions is not for the faint of heart, but I'm hoping through robust back testing, it will prove it's worth for use in a real money environment.