TLC Weekly Update November 8, 2019


I came across this video with James Rickards, the lawyer of Long Term Capital Management. LTCM is the firm that nearly brought down the world as we know. This is a great video explaining many things that everyone should watch.

And it is now official, the introduction webinar of DaytradingBias at on Nov 12th 4:30 pm ET. Register now to participate!


For those of you asking about NinjaTrader version of the day trading strategies offered at DaytradingBias, I am happy to say that we are making good progress on that front. When they are ready I will let you know.

I have scheduled a trip going to Hong Kong again later this month. This time it will be a short trip to take care of some business deals. I do not foresee much issues to stay connected. For anyone who like to meet up in Hong Kong, drop me a line and we can work something out for sure.

Have a great weekend all!

My Journey to Fully Automate My Trading: The Good, The Bad and The Ugly


Without the institutional level support, like what I usually get for my affluent clients, auto trading is not without its issues. Although my experience over the past few months is in general very positive. There are things that everyone who try to auto trade through retail brokerages must watch out for.

The Good

When everything is working fine, your automated trading strategies just do what they are supposed to. You can do whatever you like during the trading hours. If there were trades taken, Tradestation automatically SMS the trades to my cell. So I don’t even need to do end of day checking right after market close if I am busy then. I can simply do that later knowing that everything is already taken care of.

The Bad

Well, this is where hiccups happen and you just have to intervene.

From my experience deploying trading strategies, I know the most important thing is to make sure the platform is running smoothly. Hence I make it part of my routine to check on the health of the trading computers and the platforms before the start of a trading day to make sure everything is working correctly. I now delegated this task to my assistant. Eventually, I will introduce self checking and reporting to the trading servers so that we know if there is anything going wrong when the expected reports do not arrive on time.

Over the past few months, it happened twice that somehow Tradestation was not able to reconnect to its brokerage server. It is not the fault of the Tradestation software though, as we tracked it down to massive outage at the ISP. We rebooted the ISP modem and restarted the servers quickly these two times with no impact on my auto trading at all.

The Ugly

However, there was once that we have a much more serious issue.

Tradestation crashed right after the opening without me knowing.

And on that particular day I know the automated day trading strategy should take on a position but I never received the confirmation on my cell phone. So I messaged my assistant to look into this and found out Tradestation crashed into a limbo state.

Even after restarting the server, Tradestation cannot go into auto trading due to the fact that there is an open position mismatch. I had to manually open the position myself through the magic of remote access. Then I was able to activate the auto trading. The rest of the day Tradestation worked fine.

I have no idea why the platform just crashed. There are many reasons why it crashed the way it did. What I am more concern about is how to ensure such incident does not happen again in the future. I am still working on this.

TLC Weekly Update November 1, 2019


Reorganization of my working and storage space is half way through. I managed to reduce my storage down to half the original size. It turned out I have so much old records (and junk) that can be throw away. Although it is extremely tiring, it feels great that I am one step closer towards my goal of having a better work environment.

I watched an interesting video about Zilingo’s founder, Ankiti Bose. The video disclosed an important element of her success that is often overlook by aspiring entrepreneur – she has a background in management / financial consulting at one of the big venture capital firms. I am not saying that you have to work at these firms to get the opportunity although that is often the case. What I like to point out is that if you do not educate yourself to know more about finance and how to run your own business efficiently, your chance of success will be quite low.

A more mature look at crypto’s big claims on replacing everything human through smart contracts should be a good warning sign that it will still take years before such idea can really take off. Think of the internet itself, which takes many years before it has all the necessary technical details to enable a secure environment for commerce and usage other than porn.

The introduction webinar at will be held on Nov 12th at 4:30 pm. More details about that will be announced at I am still working on the presentation though. There will be a Q&A session after the short presentation. For those of you interested in DaytradingBias yet not sure if you need the service, feel free to join the webinar and ask questions.

Nov 3rd is end of daylight saving time. Many people will be quite happy to get an extra hour of sleep. It used to be a very busy day for me after daylight saving time change because of the need to adjust the computer clocks manually on all the computers I was using. Another chore disappeared thanks to improvement in technology.

Have a great weekend all!

TLC Weekly Update October 25, 2019


My test drive of Interactive Broker working with MultiCharts is completed. It works pretty well with some minor issues here and there. So far it is definitely a functional setup for automated trading. I will write more about this combination at DaytradingBias.

Nassim Taleb did this interview talking about his book Skin in the Game. I like the way he talked about Paul Krugman and other dysfunctional academics. He really does not give a sh*t and speak whatever he wants.

I have some serious moving to be done this weekend, including some major reorganization of my storage. I need this clean up done for several years. As usual, I procrastinate over these things until one day I just jump on it.

The introduction webinar at is now scheduled on Nov 12th. Those of you interested in participating can visit the site and sign up.

I finally catch up with my backlog of emails. Going forward I will schedule regular webinars at DaytradingBias so that members can just watch the videos instead of firing tons of questions to me. Sometimes it is just that much easier to explain things with pictures and examples that you can see.

Have a great weekend all!

TLC Weekly Update October 18, 2019


It is getting cold here in Toronto. Temperature dropping fast. It looks like a very cold winter is ahead of us.

Many project deadlines are clustered this week onward until beginning of November. So far everything working out fine. Quite a number of these projects are related to DaytradingBias. I will have separate announcement on the site when they are ready.

The introductory webinar with is now rescheduled to November 12. Those who are interested to join can mark the new date down. I will be organizing some kind of special offers to go with the event. I will post more details as we get closer to the webinar.

The hacking of my sites has picked up steam again this week. From what I learned, it happens to many other websites too. My team has no choice but to monitor the situation and deal with the aftermath one attack wave at a time. Here is a real-time map of total number of attacks worldwide handled by the Wordfence network.


For my members who find the sites not loading as quickly as they should, just drop a line to my team by email so that they can look into that as soon as possible.

Came across this article on my LinkedIn feed, Tails, You Win. It illustrates how long tails, or exceptions that happen way too often, really matter and how they persist in the real world. In a way, it is another form of the 80/20 rule many of you already aware of, just that it is much more acute when it comes to any thing that is money related.

I guess writing an article or posting a video on the subject that focus on trading is in order.

Have a great weekend all!

TLC Weekly Update October 11, 2019


Lack of sleep is definitely a problem this week. So many things have to be taken care of, yet I do not always know exactly what to do with them. Taking on new challenges is fun this way.

Squeezed some time to download the daily statements for Big Game Hunter ES reference account over the past two months this week. Monthly performance summary should be updated already for everyone who like to track the performance of this automated trading strategy. When I get the chance I will follow up in my article series on auto trading what I think about the performance of the strategy so far.

In order to free up space in my office, I have to somehow go through many old stuff and boxes I never open since they were packed several years ago. Threw away a lot of garbage so far but I managed to find quite a number of interesting items, including something nostalgic like the Signal FM box that I used for trading almost 30 years ago.

For those who are too young to know what I am talking about – eSignal used to be Signal and the real-time data were streamed through FM radio frequencies and cable channels.

I wonder if eSignal still support this kind of broadcasting service …

I came across this interesting video and its article version titled The Toolbox Fallacy. It is a great reminder to all those who failed to accomplish what they desire yet keep on giving themselves excuses, that it is very important not to make yourself stuck in a loop of needing yet another tool before you will actually get something done.

BTW, due to scheduling issue, my intro webinar at will be delayed to November. I will post about the new date once I get it.

TLC Weekly Update October 4, 2019


Over the past few weeks, due to a very hectic schedule and the need to dine out with business partners who love noodles and all kinds of carbs, I somehow gained weight. And it gets very difficult to lose them even if I go back to my regular diet because every other day or so it will be disrupted again. Seriously I need a way to deal with this.

Talking about diet, I came across this piece on chess grandmasters managing their performance through diet and exercise. What strikes me very interesting is not really the part on diet and exercise as I already know how important they are. The most fascinating thing I learned is how the reigning world champion Magnus Carlsen managing his career by playing less instead of more to keep himself in peak performance. This has been what I advocate for years to traders – make fewer decisions in real time and focus more on broadening your knowledge about the markets you trade will improve your performance many times over.

I am decluttering my workspace lately hoping that by rearranging things a bit, I can manage to create a tidy corner in the room for doing webinars and videos. I did not really think of allowing people to see my office so it is something new to me. On the other hand, it is an exciting thing to try because I will be able to do so much more comparing to written articles. Just imagine I can carry out a lecture style session showing specific trading techniques and interact with the attendees in real-time …

And don’t forget to mark this down on your calendar – Oct 15th 4:30 pm I will do an intro webinar at After the short intro going through a few slides, there will be a question and answer period. See you there!

TLC Weekly Update September 27, 2019


What a productive week! I wrapped up quite a number of projects over the week. Time to have a mini celebration.

First, I finally completed my training course, The Emini S&P Day Trading Course. It is first time ever anyone use this approach to teach people how to day trade. I hope it will set a new standard in the industry and re-define the meaning of trading education.

Second, I get to sit down with my team to figure out what to present in the upcoming introduction webinar this coming Oct 15, 2019 at, a traders community. I will post more about the webinar when I have more details. For now I just know it is supposed to start at 4:30 pm Eastern Time and I am supposed to do a presentation of what DaytradingBias does.

I came across this youtube video on exercising with just the resistance band. It is what I mean I always travel with that. A picture is worth a thousand words. A video tells the complete story.

Just posted another article yesterday for my series on trading automation. The misunderstanding is so deep, among not just the trading community but also normal folks who get to know about mechanical trading from news of them losing millions (even billions) of dollars, I think I need to voice my stand on this issue.

MY Journey to Fully Automate My Trading: How Do I Know a Trading Strategy Will Work in the Future?


I was asked the title question, “How Do I Know a Trading Strategy Will Work in the Future?” and various variations of the same question so many times that I think it is a good idea to address that in this series. As oppose to many advocates of mechanical trading who have a Zen like view of the subject, my answer is very different in many levels depending on your understanding of how a market really function. Let’s dive in.

Many mechanical trading gurus dodge this very question with the concept that you should expect your strategy to stop working one day in the future. And that you would never know when that day will arrive, so you must use proper money management to protect yourself. Yet, at the same time these gurus tell people to use various versions of the Kelly formula to increase their trading size so that a trader can make so much money in the shortest amount of time. In other words, they just don’t know if the very trading strategies they show the world today will work tomorrow but they still lure you to bet everything you have including all the profits you have made over time.

You cannot blame them for doing so because they often discovered their winning trading strategies by chance and by throwing everything they can think of to the optimizer to get the results they have presented. Even they do not know why their trading strategies were working in the past. Hence they cannot tell when and why their trading strategies may fail in the future.

I call my approach Mindful Trading Strategy Design. The strategies are not created by random observations. My research is done in such a way that a set of trading strategies are all part of a neatly integrated framework. One such framework obviously is the application of classic chart patterns. However, majority of the people who work on mechanical trading strategy research are very bad chart readers. They have a distaste of the idea. Instead of finding a way to quantify the time-tested methodology, they focus on using engineering methods to, hopefully, bump into something somehow that looks like they are working trading strategies. What they are really doing is curve fitting of both rules and their related parameters. Whether such product from the process would work in the future is not really what they care for.

That’s why these automatic trading strategy generators you see out there that can produce all these fancy black boxes and gray boxes of trading strategies that are highly profitable in backtesting do not sell really well. The reason is simple. The trading strategies produced do not work once they go live. The benefit of hindsight makes these strategies curve-fitted with special rules and conditions to deal with things in the past that you are supposed to lose money!

It is perfectly alright to lose money in trading. A trading strategy should lose money in the past when those situations were caused by unforeseen circumstances. And it is the very reason why we need money management rules. It is a simple concept but majority of people who are handed with a lot of historical data often forget this the moment they dived into the world of data mining.

And that’s why I can tell if my trading strategies will continue to work in the future. They are designed to take advantage of specific market conditions that follow the principles I stated in The Art of Chart Reading (AoCR) and Special Theory of Price Discovery (STOPD). As long as the markets continue to follow the same dynamics as described in STOPD, which has been ever since the concept of markets was born, my strategies will continue to work.

The truth is ugly – no one wants to tell others their trading strategies are just doing okay. People all aim for these super mechanical trading strategies that can make a killing in a market with next to none in drawdown and ultra high winning rate. Yet, it is exactly these trading strategies that will crash and burn.

I have been doing this for two decades. My two cents should mean something.

TLC Weekly Update September 20, 2019


After blocking out majority of my time from evening onward since last Saturday, I managed to force myself to sit down and completed the Emini S&P trading course I promised for a long time. Majority of the course manual has already gone through the first round of editing by my editor. I will try to wrap up the manual for first release as soon as possible. Since I am offering life time support of the course, everyone who purchase the course will be able to download all future releases from the support area so such issue of the manual going outdated should not be a problem.

I am very delighted that I finally completed this core training material for “the rest of us”. I was never one of those 4% of the population destined for trading. My older brother was and he is still better than I am today in terms of these traders’ traits. But I found a way to compensate my lack of talent with a highly structured approach to trading that helps me forge a successful trading career that I am proud of.

My secret wish is to empower all normal people like me to be able to make money from the financial markets more easily. It is really time to stop preaching the classic way of trading education to the normal people. We are just there to use the market to make money, we do not need to be passionate about the markets or damn curious about the future development of these markets. We just need the right set of tools to strive in the current economic environment where the government no longer care about normal people’s financial well beings.

I read this article on the best books for learning modern statistics and find that these books are much better than the classic university text books. If you are interested in data mining, these books will be very good introduction. The best part is, they are free.

And for those of you who are Malcolm Gladwell fans, here is his talk about his latest book, Talking to Strangers. I have not picked up the book yet but I am sure I will have it on my reading list.

Have a great weekend all!