SMART Trading Strategies

Category: Notes

  • How Markets Really Work by Larry Connors

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    Chapter 1 Chapter 2: Short-Term Highs and Short-Term Lows Average one week gain (%) for S&P after it makes a High Low 5 day -0.02 0.43 10 day -0.03 0.51 Average one week gain (%) for Nasdaq after it makes a High Low 5 day 0.08 0.57 10 day 0.20 0.74 Chapter 3: Higher Highs…

  • Mean Reversion Trading Systems by Howard Bandy

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    These are notes complied from Howard B. Bandy’s excellent book: Mean Reversion Trading Systems. The notes here are based on what is relevant to me and does not cover everything that is discussed in the book. In addition, I did not copy all the code examples (aka listings) in the book. If you are interested…

  • Quantitative Trading Systems (2nd Edition) by Howard B. Bandy

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    These are notes complied from Howard B. Bandy’s excellent book: Quantitative Trading Systems. The notes here focus on Chapters 9 to 17, which primarily discuss different trading systems and strategies. The post is a work-in-progress and will be updated as I complete the different chapters. Chapter 9: Trending Systems Key Takeaways He gave an example…

  • Selling Cash Secured Puts by Alan Ellman

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    Here are some notes I took from the book “Selling Cash-Secured Puts” by Alan Ellman. I’m already familiar with how options work and have read his book on covered call writing. These notes only cover the new concepts I learned. I strongly recommend that you buy both books (both are excellent) for more details and…

  • Algorithmic Trading by EP Chan (Notes Part 1)

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    This post summarizes some notes that I took from the book “Algorithmic Trading” by Ernest Chan. I’m already familiar with some concepts, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 1: Backtesting and Automated Execution…

  • Quantitative Trading by EP Chan (Notes Part 1)

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    Note that this post does not summarize everything that’s covered in the book. I am only summarizing what is relevant/new for me. Chapter 1: The Whats, Whos, and Whys of Quantitative Trading Daily work (for a semi-automated operation) Daily work (for a fully-automated operation) Monitor and intervene when software and connectivity broke down Chapter 2:…

  • Covered Call Writing by Alan Ellman (Notes Part 3)

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    Here are some notes I took from the book “Complete Encyclopedia for Covered Call Writing” by Alan Ellman. I’m already familiar with how options work, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 9 –…

  • Covered Call Writing by Alan Ellman (Notes Part 2)

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    Here are some notes I took from the book “Complete Encyclopedia for Covered Call Writing” by Alan Ellman. I’m already familiar with how options work, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 5: Portfolio…

  • The Wheel Strategy for Options

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    The wheel strategy = Sell Cash Covered Puts + Sell Covered Calls when assigned the stock Here’s a video discussing the wheel strategy: Rules: Only sell cash covered puts on stocks that you want to own Sell 30 to 40 days to expiry Sell options with delta = 0.3 Lessons: If you have 50% unrealized…

  • Covered Call Writing by Alan Ellman (Notes Part 1)

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    Here are some notes I took from the book “Complete Encyclopedia for Covered Call Writing” by Alan Ellman. I’m already familiar with how options work, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 2 Covered…