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Trading Strategies
What’s the Best Time to Trade Forex?
The forex markets are open 24/5, but not all hours are created equal. Here I dissect my broker data to determine the best time to trade forex.
Forex Weekend Gaps: Can You Exploit Them?
Have you noticed that forex weekend gaps usually reverse within 3 days? Here I’ll program a mean reversion strategy to exploit gaps over the last 18 years!
Dynamic Position Sizing: Is It Time to Go Big?
Should you increase your lot sizes for higher probability trades? Let’s code a dynamic position sizing scheme to capture more outsized wins!
Pivot Points: A Reliable Support & Resistance Indicator
Pivot points are the perfect tool if you trade using support & resistance. Here’s how to develop an automated pivot points forex strategy!
Money Flow Index: An Improved RSI?
The Money Flow Index is sometimes called the volume-weighted RSI. Can it outperform the RSI in this trend following strategy?
Automated Bollinger Bands Squeeze Forex Strategy
StrategyQuant’s BBWR indicator is the perfect tool to detect a Bollinger Bands squeeze. Here I explain how it’s calculated, and use it to program a breakout strategy for the AUDJPY!
Automated Schaff Trend Cycle Forex Strategy
The Schaff Trend Cycle is a unique combination of the MACD and Stochastic indicators. Here’s how you can use it to improve your trend following results!
Should You Use the Kelly Criterion for Forex Trading?
The Kelly criterion is a famous mathematical formula that attempts to maximize your long-term capital growth. In this post, I’ll apply it to a EURUSD breakout strategy and explain some of its potential shortcomings when applied to forex trading.
Forex Intermarket Correlations: How Do You Exploit Them?
Knowledge of intermarket correlations can improve your forex trading win rate. Here I explain three important types of correlations, and how you can use them to benefit your trading.
Can a Trading Pause Improve Your Trend Following Results?
A temporary trading pause can improve your win rate if you’re trend following a volatile market. Here I’ll program a trading pause into a simple breakout strategy, and test its effectiveness on the Widow Maker – the GBPJPY.
Strategy Development
Book Review: Building Winning Algorithmic Trading Systems
Serious traders invest in quality education. Should you read “Building Winning Algorithmic Trading Systems” by Kevin Davey?
Trade Slippage: How Can You Simulate and Minimize It?
Are you a victim of excessive trade slippage? Here’s how you can minimize slippage, and more realistically simulate it in your backtests!
Edge Ratio: A Unique Way to Quantify Entry Profitability
Selecting a profitable entry is a critical step in strategy development. Here I’ll demonstrate how to use the Edge Ratio to maximize your profit potential.
Do You Know Your System Quality Number?
The System Quality Number measures the profitability & consistency of your trading system. Here’s how to calculate your SQN and use it to improve your trading!
Using Maximum Adverse Excursion for Stop Loss Placement
A catastrophic stop loss is a vital risk management tool for many traders. Here I’ll show you how to optimize your stop loss distance using maximum adverse excursion.
Multiple Timeframe Backtesting – A Quick Robustness Test
Multiple timeframe backtesting can be a valuable addition to your strategy development workflow. Here I explain why you should do it, and how to conveniently do it in MT4 and StrategyQuant.
How to Get a Realistic Backtest Spread
Your choice of backtest spread can certainly make or break a strategy. This post will show you how to study the intraday spread variations of your market, and suggest several ways to avoid paying ridiculous spreads.
What’s Your Risk of Ruin? (Use this FREE Spreadsheet!)
Risk of ruin is a useful metric to help develop trading strategies that suit your risk appetite. This post explains how to calculate your risk of ruin, and how to use it to improve your trading!
Do You Know Your Strategy’s Optimization Profile?
Your strategy’s optimization profile often reveals its robustness, helping you select strategies that will remain profitable in live trading. Here I explain why an optimization profile is important, and how you can easily obtain one using StrategyQuant’s optimizer.
Which MT4 Backtest Report Metrics Should You Use?
Understanding your backtest report is an essential part of being a successful strategy developer. Here I explain what the numbers mean, and how you can make use of each metric during strategy development.
Live Trading
Who Are the Major Players in the Forex Market?
With its daily turnover of over $6 trillion, who are the major players in the forex market? Let’s see how retail traders stack up!
US Nonfarm Payrolls: What’s Considered a Big Miss?
A big miss in the US nonfarm payrolls can wreak havoc in the markets. What’s considered a big miss? I analyze historical values to find out!
What’s the Best Time to Trade Forex?
The forex markets are open 24/5, but not all hours are created equal. Here I dissect my broker data to determine the best time to trade forex.
What is Considered Good Trading Performance?
Are you taking too much risk for too little return? Perhaps the professional hedge funds can help define good trading performance.
5 Forex Day Trading Challenges & How to Overcome Them
Forex day trading seems to have a particular appeal to new traders. Here I highlight five hidden challenges of day trading, and offer some suggestions on how to overcome them.
How to Find a Real Trading Guru
Every day I come across a trading guru offering educational content on the internet. Many of them speak of huge returns with minimal effort. Should these be trusted? Here’s some tips on how to separate the wheat from the chaff.
How to Enjoy Stress-Free Trading
Trading is a great way to make some additional income, but not if you’re constantly pulling your hair out. Here I offer 7 tips to help make your trading profitable and stress-free.
How to Select the Best Forex VPS
A virtual private server (VPS) is a virtual computer that you can rent and access remotely. It provides a reliable platform on which to execute your forex strategies. This post will help you decide whether you need a VPS, and show you how to select an optimal VPS.
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Hey there, Wayne here! I’m on a mission to develop robust algorithmic trading strategies for the forex markets. Trading Tact is where I share my trading methods and insights.
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Hey there, Wayne here! I’m on a mission to develop robust algorithmic trading strategies for the forex markets. Trading Tact is where I share my trading methods and insights.