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Category Archives for Building Strategies

Why You Shouldn’t Use Python for Algorithmic Trading (And Easylanguage Instead)

When traders look into learning algorithmic trading, they have to choose not only a trading platform, but also a programming language. There are many options in the market, and while some use their own specific coding language platform, others use Python or C++.So why should you then not use Python in algorithmic trading? Well, the answer […]

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Intermarket State Analysis

For the past 20 years I’ve been teaching my concept of intermarket divergence. If you’re not familiar with intermarket divergence let me briefly explain this simple concept.Many markets are interrelated. These interrelationships can offer predictive capabilities for many markets. The study of these interrelationships is called intermarket analysis. A widely known intermarket relationship is the […]

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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 […]

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3 Techniques to Avoid Consecutive Losing Trades

In my experience trading futures, I have found that most damaging losses are caused by taking consecutive losing trades, i.e. runs of losing trades or correlated loses. In this post, I share 2 simple methods and 1 advanced method to avoid consecutive losses which can be applied to your trading systems and discretionary trading.The first […]

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Opening Range Breakout Trading Strategy Design and Implementation

The goal of this research is to find various set-ups and exit strategies that could be used for trading the opening range breakouts. The time frames we will be looking at are 10-min, 15-min, and 30-min opening range breakouts. We will focus our attention on the very liquid futures markets, in particular we will analyze […]

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In-Sample and Out-Of-Sample Testing

I am frequently asked if I do out-of-sample testing. The short answer is not always, and when I do it is not how most people do the test. There are lots of considerations and pitfalls to avoid when doing out-of-sample testing. Out-of-sample testing is not the panacea it is made out to be. There are […]

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3 Huge Algo Trading Mistakes To Avoid

For most traders, algo strategy development is merely a means to an end – a necessary evil to be endured on the path to making profits. Just as spending gold is more enjoyable than panning for it, so it is with trading system development; actual trading is usually more fun than developing a trading approach.Unfortunately, […]

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Why You Should Really Optimize and Even If You Don’t

optimization

Today’s topic is on optimization. Some system developers don’t believe in optimization. However, I’m going to show you why you should really learn how to optimize, and second I’m going to demonstrate that even if you don’t believe in optimization then “not optimizing” is not the solution. “Not optimizing” is not the opposite of optimization!First, […]

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Case study: Can a simple Market Internals technique actually improve trading strategy results?

In my 10+ years’ full-time trading career, I have found very few tools and tactics that would get my attention so deeply as Market Internals.In 2014, I spent about six months in a row with this unique traders tool, exploring its possibilities every single day, searching for new and creative implementation ideas for my own automated […]

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Strategy Testing – Violating These Steps Will Damage Your Account

One of the most rewarding experiences for a TradeStation trader is to pick up a performance report that proves their great strategy idea is indeed a profitable strategy. Strategy testing done properly, as is outlined in this article, can verify the efficacy of your trading strategy and give you confidence to start trading it. But be forewarned, […]

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