I recently came across a trading meme: Jokes aside, it is well known that trading can be a rather stressful activity. If you’re trading using algorithms, you’ve already taken a leap towards becoming stress-free. You won’t have to spend long hours staring at your charts; neither will you face the risk of execution errors. Here’s […]

As if individual strategy development wasn’t difficult enough, you now need to figure out how to combine those strategies into a portfolio. Fortunately, using QuantAnalyzer, there is an easy way to do it. Looking to construct a diversified portfolio of trading strategies? Chances are you’ll need a strategy correlation matrix. Here’s how to get one! […]

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. If you’re a trend… Avoiding false breakouts is a common goal among trend traders. The Kaufman Efficiency […]

Traders are perpetually engaged in the search for better entry signals. With today’s backtesting software, we can quickly quantify an entry’s profitability over years of historical data. The Edge ratio, first proposed by Curtis Faith in Way of the Turtle, is a unique metric that can help with entry selection. The ratio is derived from […]

The forex markets are open 24 hours a day, but not all hours are created equal. Trading volumes are known to vary significantly throughout the day. But I’m not one to listen to anecdotes, so I decided to dissect my broker data and verify it for myself….