Preparing your trading strategy for automation

Have you ever wondered about automating your trading strategy?

Probably every trader knows the benefits of automating their strategy but actually doing it might seem very overwhelming. I mean you have to either know how to code or hire someone who does. But even when you hire will they do it right? They need to know about trading, and finding a person like that can be tough… Oh my god… where do you even start…?

Well in this blog post I will put you on the right track. I will talk about how to get your strategy ready for automation, key points to consider before automating your strategy and give some advice on how to automate it with ease. Let’s go!

Read more “Preparing your trading strategy for automation”


Know how much edge your trading strategy has [SCIENTIFIC…

You must have an edge in the market… Use this thing and get more edge… This signal gives you the edge… Blabla edge blah…
We all heard it… We all kind of have an idea of what it is… And we all want it! EDGE! Ok well, but what is this magical edge? Well basically it’s just a fancy way of saying a statistical advantage. When you win 51% of the time it’s that 1% over the 50 that is your edge. When you do the same thing for long enough the edge is what actually makes you money. A casino always has the edge over the gamblers, and like so you want to get this edge over the markets when you trade. Read more “Know how much edge your trading strategy has [SCIENTIFIC APPROACH]”

Trading Strategy Optimization – how it’s done and does…

Strategy optimization is a very controversial topic… Just talking about backtests or automated trading algorithms starts ticking people off left and right. But then you mention that you also optimize those algorithms and then just hold on to your hat! You will hear all sorts of things about how backtested and automated trading algorithms don’t work. And if yours manages to make money… pfft… you’re just getting lucky now. Regardless… I wanna talk about strategy optimization. Explain to you why it works, how it’s done and what you should avoid when optimizing your strategy.
Read more “Trading Strategy Optimization – how it’s done and does it work? [Scientific Approach]”


The importance of a trading plan

 Now this one will probably be a short one… …so good for you! Less time spent reading blogs – more time to improve your trading infrastructure. Let’s get to it.

A short intro, of course, is mandatory… So recently I have been asked by one professional trader if I could recommend some good reads regarding Technical Analysis and trading altogether. Now clearly this person has been around the block so no need for him to read all the crap out there Read more “The importance of a trading plan”


Do backtests really work

A lot of people very often doubt the validity of a backtest. I, myself had heard this numerous times from people that I have discussed the topic with.  And it has merit because, quite often, backtests don’t exercise the past properly to simulate live market conditions correctly. That does not have to be the case though. If you know what you are doing and understand the basis of how to write a proper backtest you can achieve incredible simulation of actual market performance. Read more “Do backtests really work”


Introduction to Robust Statistics in trading

Robust statistic in trading most often is referred to as a robust statistical unit of measurement of a certain performance criteria of a trading plan.

Robust statistic in statistics is referred to as statistic with good performance when data can vary drastically. These statistics are very resistant to outliers (In statistics, an outlier is an observation point that is distant from other observations. (Outlier (Wikipedia)) Read more “Introduction to Robust Statistics in trading”