Have you ever created a strategy that backtests spectacularly, only to see it completely fail in real-time? You’re certainly not alone. Unrealistic spread is a very common cause of overly optimistic backtest results. Here I’ll demonstrate how a low backtest spread can fool you, and offer some suggestions on how to backtest with realistic spreads. […]

Leverage StrategyQuant’s genetic algorithm to automatically generate profitable strategies.  Simply specify your strategy’s building blocks and constraints, and let StrategyQuant iterate through millions of indicator combinations. Check out my detailed guide to learn more about genetic evolution in trading. Use AlgoWizard to transform your trading idea into an algorithm. No coding required! Export your strategies […]

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… In this third and final part of the MT4 strategy development guide, we’ll attempt to improve our basic […]

The Schaff Trend Cycle (STC) is the perfect tool for traders hoping to capture price swings within a long-term trend. In this post, I’ll cover the following aspects of the STC: Calculation and Interpretation Comparisons vs. the MACD and Stochastic Limitations… The Kelly criterion is a famous mathematical formula that attempts to maximize your long-term […]

Many years ago, a stock broker told me, “When the US market sneezes, the world catches a cold.” That still rings true today. If you trade anything at all, chances are you’ll have to pay attention to the US economic reports, and few can trump the “mother of all reports”—the nonfarm payrolls. What are the […]