Both bullish and bearish trends are shown by positive movement.Īverage True Range (ATR) The average over the last X days of the true range, which is the largest of the following: (1) today’s high minus today’s low (2) today’s high minus yesterday’s close or (3) today’s low minus yesterday’s close. Thus, it is really another word for “position sizing.”Īverage Directional Movement (ADX) An indicator that measures how much a market is trending. However, its real power comes when people use it to tell them “how much” to invest in each asset class. Due to the lotto bias, many people think of this as a decision about which asset class (such as energy stocks or gold) to select. ![]() ![]() This strategy usually involves the simultaneous purchase and sale of related items.Īsset Allocation The procedure by which many professional traders decide how to allocate their capital. Adaptive Moving Average A moving average that is either quick, or slow, to signal a market entry depending on the efficiency of the move in the market.Īlgorithm A rule or set of rules for computing, that is, a procedure for calculating a mathematical function.Īnti-martingale Strategy A position-sizing strategy in which position size is increased when one wins and decreased when one loses.Īrbitrage The taking advantage of discrepancies in price or loopholes in the system to make consistent low-risk money.
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