The forex market is the largest and most liquid financial market in the world. According to the Bank of International Settlements, the forex daily turnover exceeds $6 trillion. Who are the major players in this market? Read on to find out! 1. Central Banks Central… Many years ago, a stock broker told me, “When the […]

This has to be among the top 5 questions I’ve received over the years. Continual improvement is the name of the game, but to improve, you first need an objective way to measure performance. So as a retail trader, is there a professional benchmark, against which… Not all entries are created equal. Can we identify […]

This has to be among the top 5 questions I’ve received over the years. Continual improvement is the name of the game, but to improve, you first need an objective way to measure performance. So as a retail trader, is there a professional benchmark, against which you can measure your trading performance? I have to […]

With the potential for quick profits and the excitement of the rapidly moving markets, forex day trading seems to be gaining popularity. I suspect this is fueled by the hordes of trading gurus who portray the ideal trader lifestyle – you sit on a beach with your cocktail, execute a few trades with the click […]

Quantifying a strategy’s performance is a challenge that every trader faces. In a previous post, I discussed MT4’s default backtest performance metrics. At the minimum, I recommend using the return/maximum drawdown ratio to get a measure of your strategy’s risk-adjusted performance. The System Quality Number (SQN) is another popular metric that could help with your […]

This content has been archived. It may no longer be relevant Leverage StrategyQuant’s genetic algorithm to generate profitable strategies. Simply specify your strategy components and performance filters.  Use the AlgoWizard module to quickly transform your trading idea into an algorithm. No programming knowledge needed! Export your strategies to Metatrader, Tradestation or MultiCharts for live trading.  […]

✔ Your resource for automated trading strategy development ✔ Empowering retail traders to create efficient income streams Simultaneously trade multiple strategies, markets and timeframes, any time of the day. Backtest your strategy to quickly determine its long-term profitability and risk profile. Keep emotions at bay with the automatic execution of your trading rules. ✔ StrategyQuant […]

Over the years, I have repeatedly found that forex markets are mean reverting in general, with the possible exception of the JPY pairs. Does mean reversion apply to weekend gaps as well? And if it does, can we program a strategy to exploit this phenomenon? Before finding out, let’s cover some causes and examples of […]

Ever wondered how you can harness the efficiency of genetic algorithms to automatically generate profitable trading strategies? I’ll explain how genetic algorithms work, why you should use them, and show you how to setup StrategyQuant’s genetic builder! Use walk-forward analysis to take your out-of-sample testing to the next level! I’ll cover the concept and benefits […]

Trend following is a reliable income generator for many retail traders. Jumping aboard a trend after a pullback or consolidation is a great way to improve your win rate and entry price. Here I’ll illustrate how you can use inside bars to predict trend continuation for the M30 GBPJPY. What is an Inside Bar? An […]

✔ Your resource for automated trading strategy development ✔ Empowering retail traders to create efficient income streams Simultaneously trade multiple strategies, markets and timeframes, any time of the day. Backtest your strategy to quickly determine its long-term profitability and risk profile. Keep emotions at bay with the automatic execution of your trading rules. ✔ StrategyQuant […]

As algorithmic traders, identifying support and resistance levels can be a challenge. Market structures that are easily discernable by the human eye are sometimes tedious to program. Fortunately, pivot points provide a simple mathematical definition of support and resistance levels. In this post, I’ll explain how pivot points are calculated, and how you can combine […]

This series of strategy development articles serves to illustrate the development process used for my algorithmic (or automated) trading strategies. There are two main development workflows, depending on your choice of software. The first uses Metatrader 4’s strategy tester module, where we build a strategy from the ground up by incrementally adding entries, exits and finally filters. […]

A trading idea that is congruent with your market’s characteristics is likely to perform better. Market behaviour can be quantified in countless ways, but I typically focus on historical volatility and ability to trend well. This article will illustrate some methods to quantify these characteristics, giving you a head start in finding a trading solution. […]