by Wayne | Aug 16, 2023 | Strategy Development
An investment in knowledge pays the best interest. And what better way to block out the noise of the internet and acquire knowledge than to dive into the trading literature? Today I’ll review “Building Winning Algorithmic Trading Systems,” which helped me out...
by Wayne | Oct 15, 2021 | Strategy Development
Trade slippage is the common enemy that erodes your strategy’s expectancy, and usually becomes more severe after going live. This post will cover: Why slippage occurs 4 simple ways to minimize slippage 3 ways to simulate slippage while backtesting Every trader...
by Wayne | Oct 4, 2021 | Strategy Development
The Edge Ratio helps you compare entry signals by measuring the open profits and losses they generate. This post will cover: Maximum favourable excursion and maximum adverse excursion Edge Ratio calculations Quantifying entry profitability with the Edge Ratio Benefits...
by Wayne | Sep 24, 2021 | Strategy Development
Dr. Van Tharp developed the System Quality Number (SQN) as a simple method to rank trading systems. This article covers all you need to get started: The concept of R-multiples The SQN formula Obtaining your SQN using MT4 and QuantAnalyzer Limitations of the SQN...
by Wayne | Jul 26, 2021 | Strategy Development
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. In the diverse world of strategy development, there are often multiple approaches to the same...
by Wayne | Jul 20, 2021 | Strategy Development
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. Most retail traders are time-crunched in one way or another. While live...