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… The MACD is a simple and effective momentum indicator. […]

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. Every automated forex trader has combed through an MT4 backtest… In this third and final part of the MT4 strategy development guide, […]

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…. With the forex markets trading 24 hours a […]

Use walk-forward analysis to take your out-of-sample testing to the next level! I’ll cover the concept and benefits of walk-forward analysis, and demonstrate its application to a trend following strategy. Your test settings can make or break your walk-forward optimization results. StrategyQuant’s walk-forward matrix can help you select optimal settings. Want to use Monte Carlo […]

If you’ve ever used a technical indicator, you’ll understand the perennial conflict between lag and reliability. You want your indicator to respond quickly to prices, while minimizing the number of false signals. In his book Cybernetic Analysis for Stocks and Futures, John Ehlers developed the Laguerre RSI as a way to minimize both the noise […]