In my opinion, his Four‐Week Rule (please refer to Figure 2.5 in Chapter 2) is one of the most successful trend‐trading strategies to have been developed.

Standard deviation ignores a trader's reality. Traders care deeply about capturing upside profitability while avoiding downside losses.

Setup & Entry: Buy a break of the highest weekly high of the preceding 52 weeks Stop: Sell a break of the lowest weekly low of the preceding 52 weeks Sell Rules Setup & Entry: Sell a break of the lowest weekly low of the preceding 52 weeks Stop: Buy a break of the highest weekly high of the preceding 52 weeks Similar to the other strategies, I've

The Math Profitable trading is simply about the math, where you need to commence trading with a 0% ROR. You will need to learn how to correctly calculate it. If it's not at 0%, or if you're unable to calculate it, then you have no business trading. If you do trade then you'll deserve the disappointment you'll experience. The math of profitable

A variable is assumed to be normally distributed where: 68% of all values should fall within one standard deviation of the average, 95% of all values should fall within two standard deviations of the average, 99.7% of all values should fall within three standard deviations of the average and 99.9% of all values should fall within four standard

My key application messages include: develop your verification skills, get software now, less is more, robustness is gold, embrace the old, it's the new fashionable, resist the new, develop turn‐key strategies and trade a portfolio of turn‐key strategies.

FIGURE 2.5 Performance of Richard Donchian's 1960 Four‐Week Rule strategy demonstrates markets have not changed over the last 40 years, despite the array of financial crises that have occurred. It supports the old adage that ‘the more markets change, the more they stay the same’.

FIGURE 7.2 Methodology B, on a risk‐adjusted return basis, is superior to methodology A.

I do use some indicators in my strategies such as the average true range and moving average indicators; however, as a general rule, I'd prefer to deal with 100% price. The big problem with variable dependent indicators is that they usually lead to equity curve instability, a situation best avoided.