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Category Archives for Building Strategies

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 […]

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The Overnight Edge

Take Profit Seasonality on Overnight Trading

In this article I’m going to highlight a trading edge that appears in many different instruments and markets including both the futures and equity markets. It’s an edge that has persisted for well over two decades. This edge is a long bias that occurs in the “overnight” session as defined by the U.S. markets. Traders […]

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The One Thing Before Building A Intraday Trading System

If you have been reading EasyLanguage Mastery for a while you’re probably familiar with how I develop trading systems. The very first step is to come up with a simple idea to act as the seed or core of your trading system. I call this your key concept. This key concept is a simple observation […]

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Improving Your Algo Trading By Using Monte Carlo Simulation and Probability Cones

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 […]

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Rebalance Strategies

This is a simple technique that can increase returns per dollar traded. This blog will show an example of a simple strategy to demonstrate the advantages of Rebalance strategies.The base strategy is quite simple and uses all built-in signals inside of Build Alpha:Entries:RSI2 crosses above 15 and 20Vix term structure is positive (front two months, […]

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

I came across an article over at the blog, Jay On The Markets, that talked about applying a bullish outside indicator on a monthly chart. The article I was reading is entitled, “One Sign That the Bull May Still Have Legs​”. In this article Jay talks about the incredible run the U.S. broad market has experienced […]

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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 […]

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Why Trading The Wrong Timeframe is Killing Your Trading Account

What timeframe should you trade?Here is a big hint: the smaller the timeframe, the more difficult it is to develop a successful system. In other words, developing a system to trade on a 5-minute chart is more difficult than developing a system that trades on a daily bar.There is a lot more noise on the […]

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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 […]

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Do Stop Losses Always Work? (Can Stop Losses Fail?)

One of the most important aspects of trading is that of managing and preserving your capital. If you lose all of your trading capital, there is no way you can make back the lost amount, regardless of how profitable your strategy is.In order to protect themselves from outsize losing trades, many traders choose to use […]

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