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What 567,000 Backtests Taught Me About Algo Trading Exits
Ask any trader how they trade, and 8 times out of 10 the answer will involve the entries they use to trade: “When the trendline is confirmed, I enter.”“When the close is above the 9 bar moving average and the RSI is not oversold, I go long.”“When the order flow suggests a downwards push, I go […]
Continue readingTrading Multiple Strategies With The Same Instrument – Part 3 [Updated for 2021]
In the last two articles (article 1, article 2), I discussed the need for trading multiple strategies with the same instrument in the same account. This type of capability is very important to a trader who wishes to trade a diversified portfolio, while at the same time efficiently managing margin. Unfortunately, with many platforms this capability […]
Continue readingTrading Multiple Strategies With The Same Instrument – Part 2 [Updated For 2021]
In the previous article, I discussed the need for trading multiple strategies with the same instrument in the same account. This type of capability is very important to a trader who wishes to trade a diversified portfolio, while at the same time efficiently managing margin. Unfortunately, one of the limitations of Tradestation, my trading platform of […]
Continue readingTrading Multiple Strategies With The Same Instrument – Part 1 [Updated For 2021]
Tradestation is a pretty amazing testing and development platform. I’ve been using it for over 10 years, and I’ve been very happy overall with it. Sure, there are certain aspects of it I don’t like, and certain things that are hard to do, but I think that is true of almost any platform.My biggest pet […]
Continue reading15 Price Action Patterns That Work in 2020
Most algo traders are always on the lookout for new ideas to test and evaluate. I’m no exception.How about 15 price patterns that might form the basis of a good trading strategy?Without further ado, here they are (along with some general warnings and tips about using them)… Pattern 1 – Directional Bars and Pullback Momentum General DescriptionThis […]
Continue readingAlgorithmic Trading Tip – Building Risk Protection Into Your Trading
90% of traders out there build strategies the wrong way. How do I know that? It shows up in the statistics – most traders lose!When most traders build a strategy, they have one goal in mind – maximizing profits. That’s not necessarily terrible all by itself – after all, you need profits to make it […]
Continue readingImproving Your Algo Trading By Using Monte Carlo Simulation and Probability Cones
Using Statistical Techniques To Better Your Odds Of Trading SuccessMy introduction to the world of applying statistical tools to real world situations was not a good one. I was in charge of Quality Assurance for a medium size aerospace company. Although we extensively used Statistical Process Control (SPC) on the factory floor, we now decided […]
Continue readingDollar Stop Losses Vs. Volatility Stop Losses: Algorithmic Trading Tips
I remember when I first got into trading and algo trading. Everything was a mystery: What kind of signals should I use for entry? What kind of stop losses should I use? What method of position sizing is best?The list went on and on. So much to learn!But for one of those […]
Continue readingThe Ultimate Guide To Successful Algorithmic Trading
Pretty much everyone who has programmed a computer to doanything beyond outputting “Hello World” has dreamed of having a computer algorithm (algo) working tirelessly to extract money from the financial markets, be it in stocks, bitcoin, soybeans or anything else traded on an exchange. “Programming genius, market slayer” is a phrase we’d all like to […]
Continue readingGoing Live With Automation
Going live with an automated strategy is one of the coolest, but also scariest things you can do in trading. Here you are letting a computer trade with your hard earned money. Theoretically, the computer makes ALL the buying and selling decisions except for rollover trades. Many people simply can’t do it – the stress […]
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