Want to develop a portfolio of automated trading strategies?
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!
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 are the perfect tool if you trade using support & resistance. Here’s how to develop an automated pivot points forex strategy!
The Money Flow Index is sometimes called the volume-weighted RSI. Can it outperform the RSI in this trend following 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!
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!
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.
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.
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.
Partial profit taking is a dilemma often faced by long-term trend followers. Could this benefit your overall strategy performance?
StrategyQuant offers a support & resistance ranking indicator to help detect upcoming breakouts. Use it to program an automated USDJPY strategy!
The MACD is a simple and effective momentum indicator. Here’s how you can save screen time by programming a MACD divergence strategy for the GBPJPY!
Inside bars can be a valuable predictor of trend continuation. Here’s how you can program an inside bar, and use it to improve your trend following strategy!
The Laguerre RSI attempts to improve the responsiveness of the regular RSI, whilst keeping whipsaw trades to a minimum. Let’s see how well it detects short-term pullbacks for a trend following strategy!
Bollinger Bands are great at predicting upcoming price reversals. Here’s how you can use its ‘free bars’ to build a reliable Asian scalper!
Despite its cool name, the Supertrend indicator often seems to slip under the radar. Here I explain how it’s calculated, and combine it with moving averages to produce a simple trend following strategy.
Trailing stops are a popular feature in trend following strategies. They provide downside protection and allow you to ride the big trends. Try out these simple yet effective trailing stops for your next trend strategy!
Like candlesticks, the Ichimoku indicator is a fine Japanese creation. Here I’ll explain how the Ichimoku is plotted, and use it to build a trend following strategy for the USDJPY.
Volume is seldom discussed in forex trading. But as a stock trader would tell you, volume provides insights into the underlying market sentiment. Here I’ll demonstrate the use of two simple volume filters to improve entry reliability.
The Kaufman Adaptive Moving Average is a unique indicator that automatically adapts to the market’s noise. Here I explain its inner workings and show you how to build a trend following strategy around it.
The Awesome Oscillator is one of Bill Williams’ fine creations. It is a simple yet effective momentum indicator that can be a valuable addition to your strategy. Here we’ll use it together with a moving average to fine-tune our trend following entries.
The Commodity Channel Index (CCI) is an underrated momentum indicator that is often overshadowed by the RSI and MACD. I’ll show you how to build a simple trend following strategy using a pair of CCI indicators!
Have you heard of fixed ratio money management? How does it compare to the popular fixed fractional approach? Here I’ll explain how fixed ratio works, and see how it stacks up against fixed fractional money management.
Avoiding false breakouts is a common goal among trend traders. The Kaufman Efficiency Ratio provides a simple method of quantifying a market’s noise, helping traders focus on the smoothest trends. Let’s add the efficiency ratio to a simple trend following strategy and see whether its performance improves.
The QQE is a mysterious indicator that sometimes pops up in trading forums. Does it deserve a place alongside the more traditional momentum indicators like the RSI and CCI? Let’s add it to a trend following strategy to find out!
Bollinger Bands are great at detecting overbought and oversold conditions. Let’s use them to develop a countertrend strategy, and then refine our entries using limit entries and candlestick patterns.
Trailing stop losses are a popular feature in many trend following systems. Bollinger Bands, the ever-popular technical indicator among retail traders, actually contain two inbuilt trailing stops. Are these any good? Let’s find out!
Bollinger Bands are ubiquitous in the trading world, but there’s less discussion about their lesser-known cousin, the Keltner Channels. Do these perform as well as the Bollinger Bands? Let’s compare them over a broad range of input parameters.
Are you a victim of excessive trade slippage? Here’s how you can minimize slippage, and more realistically simulate it in your backtests!
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.
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!
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 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.
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.
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!
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.
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.
Traders often use Monte Carlo simulations to estimate worst-case drawdowns, but did you know they can be used for out-of-sample testing too? This post demonstrates the use of StrategyQuant’s Monte Carlo simulator to randomize historical prices and strategy parameters, helping you select robust strategies for live trading.
We all want a large sample of trades in our backtests, but practical limitations such as data availability often get in the way. Here I’ll explain why 30 trades is insufficient, and how you can use standard error to quantify the uncertainty arising from a small sample size.
They say the trend is your friend, but how do you find your friends in the forex jungle? This post shows you how to use the ADX indicator to identify forex markets and timeframes that trend well.
The ability to efficiently trade a diversified portfolio of strategies is one of the biggest advantages of algorithmic trading. Here we will use QuantAnalyzer’s Portfolio Master to build a portfolio consisting of high performing, uncorrelated strategies.
How do you improve your trading strategy in MT4? This post will show you how to optimize the entry and exit parameters for a moving average crossover strategy. Finally, an intraday time filter will be added to help avoid false breakouts.
With a fresh algorithm at your fingertips, how do you verify that it has been programmed correctly? This guide will show you how to use Metatrader 4’s visual backtester to debug and backtest your strategy.
Converting your trading idea into an algorithm is the first step towards reaping the benefits of automated trading. This guide will cover the creation of a simple moving average crossover algorithm, without any actual programming.
Are you getting a comprehensive assessment of your strategy’s downside? This post will discuss several methods to measure drawdowns, helping you build and select strategies that better suit your risk appetite.
With an abundance of technical indicators available, selecting your strategy’s entry conditions can be overwhelming. This post will illustrate a method to graphically compare the profitability of different entries.
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.
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.
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.
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.
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.