Traders often search for better position sizing methods to amplify their strategy’s edge. The Kelly criterion is one option that often pops up in forex forums. Since it is particularly popular in the gambling world, it naturally attracts much skepticism from traders. Is it really that bad? Let’s find out! What’s the Kelly Criterion? The […]

If you’re a trend follower, there’s no better feeling than riding a massive trend. Regardless of your trading strategy or timeframe, you’re practically guaranteed to capture a bagful of pips. Unfortunately, markets typically trend less than half the time. If you have reason to believe the market will enter a period of consolidation, would it […]

Every automated forex trader has combed through an MT4 backtest report at some point. The optimizer reports, in particular, will likely occupy much of your attention. Do you really need to pay attention to every metric? My aging eyes say no. Surely some metrics are more important than others. But before figuring out which metrics […]

Partial profit taking is a dilemma often faced by long-term trend followers. Could this benefit your overall strategy performance? Let’s test! You’ve probably heard the saying ‘Nobody ever got hurt taking a profit.’ In partial profit taking,… Trailing stops are a popular feature in trend following strategies. They provide downside protection and allow you to […]

Most algorithmic traders like myself swear by technical analysis. Nonetheless, adding fundamental analysis to your forex trading, in the form of intermarket correlations, could help improve your win rate. Let’s dive into the three most important types of forex intermarket correlations. Correlations With Interest Rate Differentials Interest rate differentials have been the most consistent driver […]