Archive for Boris Schlossberg

Forex Trading Tips: Trading With Discretion

Trading With Discretion

One of the best things about “Inside the Black Box”, the book about quants that I am reading, is the authors refreshing candor in discussing the shortcomings of algorithmic trading. The quant’s Achilles heel is something called “regime change”. Regime change is basically a fancy way of saying that the [...]

Forex Trading Tips: Price Action is NOT Random

Price Action is NOT Random

The chart above courtesy of the ChartStore, recently appeared on Barry Ritholtz’s Big Picture blog and immediately caught my eye. What I find fascinating about it is how it completely contradicts the efficient-market-all-price-action-is-random school of thought. Those of us who trade every day of course know empirically [...]

Forex Trading Tips: The Hidden Risk Within Your Trade

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In “Inside the Black Box”, Rishi Narang lifts the veil away from the secretive world of quantitative trading, explaining in clear, easy to understand English the key concepts that drive so much of hedge fund trading today. Instead of becoming bogged down in the inscrutable math of the quants. Mr. Narang expertly navigates the reader [...]

Forex Trading Tips: How NOT To Learn From Your Mistakes

How NOT To Learn From Your Mistakes
“Good Morning Boris, that’s fine we cannot win every trade,” started an email from a sub that I received this week.

“There are two points I would like to mention and will only follow if you agree:

1. I set an alarm and wake up at 4:25am when the trade [...]

Forex Trading Tips: The Paradox of Negative Edge

The Paradox of Negative Edge
The latest book I am reading, Fortunes Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street by William Poundstone is a fascinating account of how some of the smartest scientific minds in America along with some of the most unsavory characters in organized crime [...]

Forex Trading Tips: Float like a butterfly, Sting like a bee

Float like a butterfly, Sting like a bee
A book that I am currently reading (The Quants, by Scott Patterson) follows the classic path of a Greek tragedy. Man full of hubris (in this case due to his intellectual prowess) believes he has discovered the Truth. Drunk with arrogance from his ability to extract billions [...]

Forex Trading Tips: A System For Success

A System For Success
Last week I wrote, “Each day I attempt to ask and answer only two questions –What’s Happening? And How Will It Affect Price? Get that answer right and you’ll be on your way to being a successful short term trader.”

That’s only partially true.

Short term trading is never only about analytics. It [...]

Forex Trading Tips: The FX Toolbox

The FX Toolbox
This week, after our live trading session was over (24 out of the last 25 months making money, pat, pat on my own back ) I was swamped with requests to put together an FX toolbox – web tools that I use every day to help me make sense of trading. So [...]

Forex Trading Tips: Better Never Than Late

Better Never Than Late
“All dogs are born with some degree of chasing instinct. Dogs will chase, we all know this; however, there are many reasons why dogs may give chase. The two common and closely related ones are often referred to as Play and Prey drives.”

From Basic Chase Instinct in Dogs by Karen Peak.

As 21st [...]

Forex Trading Tips: Excuses, Excuses

Excuses, Excuses
Last week when I was in the UK, I saw a BBC1 documentary that literally made my eyes pop out. The subject of the show was foreign immigration. Apparently, UK is one of the few EU countries (along with Sweden) that allows complete freedom of access to its labor markets and as [...]