A big advantage of algorithmic trading is the ability to simultaneously trade a large number of strategies around the clock. But these strategies are only as reliable as the computer you trade them on. A forex VPS has become a permanent staple in my trading toolbox. I have a VPS with FXVM, with about 70 […]
track record Archives – TradingTact
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…
What Is Drawdown in Trading? – TradingTact
Risk management is a cornerstone of successful trading. Most traders quantify risk by measuring the drawdowns incurred by their strategies or portfolios. Drawdown is the decline in account equity from a prior equity peak. For example, if your peak equity is $5000, and your current equity is $4000, you have a $1000 drawdown. As trading progresses, […]
Indicators Archives – Page 2 of 5 – TradingTact
The MACD is a simple and effective momentum indicator. Here’s how you can save screen time by programming a MACD divergence strategy for the GBPJPY! You can download the strategy below from the Free Strategies section. The Moving Average Convergence/Divergence… The Laguerre RSI attempts to improve the responsiveness of the regular RSI, whilst keeping whipsaw […]
Multiple Timeframe Backtesting – A Quick Robustness Test – TradingTact
Most retail traders are time-crunched in one way or another. While live algorithmic trading requires little screen time, the initial strategy development phase requires much time and effort. Multiple timeframe backtesting can be a great tool in your bid to efficiently churn out robust strategies. Why Backtest on Multiple Timeframes? 1. Verify Your Strategy’s Robustness […]