Category Archives for Building Strategies

Algorithmic 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 […]

Equity Curve Trading

What is Equity Curve Trading?First, let’s start off by defining what an equity curve is. It can be simply described as the growth of capital over time. Below is an equity curve that shows how an account would have performed had it invested only one contract in the fourth Free Friday strategy.(given away on twitter […]

The Overnight Edge

Step One In Building An Intraday Trading System

Improving 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 […]

Using The Bullish Outside Indicator Could Be A Start of A Profitable Trading System

Dollar 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 […]

The 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 […]

Intermarket State Analysis

How To Build Profitable Trading Systems

Building a profitable trading system is very difficult. I’m not going to sugarcoat it. It’s a challenging project where most of your ideas will not work. To make matters worse, you’re bombarded with misleading advertising, confusing claims, and wrong information. Learning a computer language to build a system is excellent, but that’s NOT enough to […]