Although conceptually easy, i found in practice that it was difficult to get from a frequency vs time display to a period vs time display in python, but that was probably just a reflection of my own very limited skills with python library tools. Withoutabox Submit to Film Festivals. Technical Analysis of the Financial Markets: Join our live trading room! Primary market Secondary market Third market Fourth market.
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The missing elements — parameter optimization, exit algorithms, money management etc. Will have to look at that. Thanks for the post. Yes, the dominant cycle concept is from Ehlers. John Ehlers work is really great, but seeing applied to real markets nowadays is even more valuable, IMHO.
I cant reproduce any of the results above. I guess it is due to trailing and similar parameters. In the same way, maybe I am coding a strategy which make sense but at the end I forget it because I see it as non profitable when the problem is due to the money management and risk control. Would not be useful to add a workshop where some risk management ideas are implemented so that beginners can get better understanding of it and develop better strategies.
I know there is all those trailing functions built on but to use one or another until one gets a nice curve is like walking half blind, or like throwing a coin hoping that the next function tried will work. Forget about risk management at this point. It would just distort results and is useless when the algorithm has no edge. First step is the model. Second step is an algorithm based on that model, with a positive return on a simulation with realistic trading cost.
This is done in the examples above. It is quite easy to come up with such systems that seemingly produce good returns. The hard part is testing if the return is for real or just curve fitting bias. That would be the next step, and only if the system passes that test, the model is justified.
Then you can think about making a real strategy from it, with trailing, risk management, money management, and so on. This is the very last step of strategy development, not the first. Reproducing published results is often difficult, but should not be a problem here. You got the code and the test environment, so you can see what the functions return and which trades are opened.
Compare with your own results. This way you can quickly find out where and why they are different. Thanks for the fast answer. I was actually using the assetlist from another broker and the results were completly down.
Thats why I thought that there was some magic added to get the results. When I use the fxcm settings I get similar results. Yes, I read in the manual how a strategy should be develop from basic idea and step by step adding features. It is difficult to know if there is an edge in the results. There is no a rule like: Hi jcl, Can you teach me a bit more about the lambda of the mean reversion, i. How can we use lambda in the mean reversion example?
When a is nonzero, the price change y t -y t-1 has a linear relationship to the deviation of the previous price from the fair price, y t-1 -Mean. The mathematical method to determine the slope a from many data pairs y t -y t-1 , y t-1 -Mean is linear regression.
From a you get the half-life parameter Lambda. The market is mean reversing when a is negative. Set our price close lagged by -1 day. Subtract todays price close against yesterdays lagged close 3. Subtract yesterday price close — mean of the -1 lagged price close 4. Calculate yt-1 and ytyt y. The steps look correct. For the R code I dare not judge the correctness — put in some data and check if the half life value makes sense.
My next question is, can this be applied to a linear trend? I tested the above procedure on the SPY from inception to present and the half life was Doesnt look to correct even thought the procedure looks correct. Jc — have you obtained accurate results using this half life method? I have, and yes, it can be applied to a trending asset, especially to SPY. But when it trends, check how you calculate the mean: Use 20 days or so.
It contains a in depth description of mean reverting algos and half life calculation. Ok if i did present to 20 days, that gives me the half life of the previous 2o days? What about the rest of the sample size? Do we then roll this on a 20 day basis from inception to present? Does it mean the half life is likely to change as the series rolls into the future? Sure, you must roll. For trading you want the mean and halflife from today, not from 10 years ago.
Since price series are nonstationary, the mean changes all the time. The halflife is much more stationary, but it can also change under different market conditions. I made my living doing volatility arbitrage, but that game is finished. I would do well for a time, but then the spread between the futures would move to a new level usually wiping out whatever profits I had. We have developed many strategies, and they all work well with TradingView.
However, there are two that we recommend that if you are going to be using the trading view as your trading platform, then you must try these two strategies out. Trading Options is an excellent way for traders to execute trades in the stock market and we have two unique strategies for options we recommend.
When trading most traders think only about the trading strategy entry and entirely forget about the exit. Make sure you develop a plan that will help you get out of trades quickly and do not just focus on how to get into the trades. Using Automated trading strategies for profit is extremely challenging because there are so many wild claims on the internet about making millions of dollars.
Do your homework do not invest in something unless you understand how it works. Then I recommend starting very small with your investment and slowly increasing the amount you spend as you begin to learn how efficient the automated system is.
The best trading strategy blog if Tradingstrategyguides Blog. This is because they have a commitment to quality and excellence in their articles and posts.
They use simple step by step instructions that make even the most demanding strategies easy to trade. The reports include the highest quality images. They also have videos about each plan to make the learning that much better. Finally, they put out an infographic for each strategy to indeed make the learning experience complete. See what that trading community has to say about the best trading strategy blogs on the internet.
Each trader needs to have their trading routine to find the perfect trading strategy that works for them. Developing a process that you use every day, will assist you in finding the exact plan that will be needed for you.
This answer will vary based on your circumstances. If you are in that category, you will have to find the best long-term trading strategy that you can and then trade that in the mornings before work or in the evenings after work.
One of the great things about trading is that your strategy can be adjusted to fit your circumstances. Another thing you should be asking yourself is how patient you are. Because if you are not a patient trader then you will not be able to wait for days and hours for entries, and in that case, it might be necessary for you to find the best short-term trading strategy because you will not have to be nearly as the patient when trading in the lower time frames.
When determining your trading strategy, you will also have to consider how much money you will have to start with because the amount of money in your trading account can make a big difference as to what type of strategy would be best for you. If you start out with a small balance of fewer than 1, dollars, then you would be wise to find the best mt4 trading strategy because Mt4 is a platform that forex traders rely on and they do not need a large sum of money to start trading.
It would also be wise to consider finding a suitable method for keeping your stop losses small since larger stops can mean more significant declines. If you have any additional queries on finding the best trading strategy, then please leave a question in the comment section, and we will be glad to help you find what you need to help you become a successful trader. Please leave a comment below if you have any questions about the Best Trading Strategy!
Your email address will not be published. What is the Best Trading Strategy? The one that fits you best for your circumstances and personality. Yes you can earn a living buying and selling using online trading platforms. The most important thing to remember is that you need to find a strategy that fits your specific trading style. I use MACD in my trading and I'm guilty of the exact type of ignorance about which the author speaks.
I read this segment many times and I think it's excellent. All in all, this is a meaty book and I read it twice. I'm still re-reading certain parts and I took a lot of notes and underlined a lot of points. I don't write many reviews and as far as trading books go my feeling is that they are long on price and short on relevance.
I don't feel that about this book at all. The points are presented in a unique way and I like that. It makes me think about trading differently and enables me to see something I've looked at many times in a different way. That is certainly worth the price of a book.
I'm working with some of the points and it will take some practice. In my opinion, this is definitely a worthwhile read. The author's blog is also a worthwhile read. Kindle Edition Verified Purchase.
This is a particularly good book if you have wasted time reading the typical technical analysis books as I have. The first book that started to wake me was Evidence Based Technical Analysis, which is essential first reading for would be analysts and traders.
Grimes lays out a more focused and personal view of what works in markets. The essence on my first read is that the most important thing is a testable edge. Hand back testing and statistical analysis are the tools that can give a path to possible profits, but the development of a trader is a long and emotional one as Grimes points out.
Testing ideas for profitability is the minimum requirement whether you use the subjective patterns Grimes lays out, or any more mystical approach too. Say you believe in Elliott wave, or Gann or Fibonacci retracements. Get a charting package and walk through past history day by day testing the idea as consistently as your "method" allows. Even if your results are positive, you still have work to do in achieving real results.
Do not count on gurus or get rich quick schemes to get you to shortcut this process. If you think your method is untestable All in, an excellent book in showing the trading game as it is, and what you must do if you intend to survive it.
Grimes provides nothing less than a complete methodology for analyzing price action. His book is exhaustive and rigorous but organized in such a meticulous manner that there's refreshing simplicity to his presentation, which is just crystal clear on every topic. Grimes is willing to acknowledge and confront the issue of randomness with careful consideration, which I think is something most traders would often rather not acknowledge.
It's alarming how frequently EMH is either ignored or casually dismissed in trading literature. The very notion of price randomness was a full-on system-shock to my psychology early in my trading days. If you are new trader, deal with it, and deal with it early. This book will hep with that and will absolutely refine your thinking. It's a gift and it may frankly be the best primer on Technical Analysis ever written.
I have never read anything better. The best book in technical analysis I have ever read. Should be required reading for all those venturing into technical trading, together with the incomparable Market Wizards series. Been trading for about 4 years and have read numerous books, watched webinars and took classes.
Although there is a lot to learn and absorb, the main problem I have encountered is an organized and logical presentation of trading concepts. Adams book is by far the best I have read in putting the market in context where I can make sense of the trading puzzle.
His teaching of random markets, the majority of times , with how to recognize supply and demand imbalance opportunities, at certain times , is an eye opener. My trading has improved immensely and for the first time I have a sense that consistent profitability in the market is possible with identifying, under-standing and internalizing your "edge". There is a saying, "When the pupil is ready the teacher will appear". If your ready, Adam Grimes is a great teacher.
I highly recommend this book. See all 80 reviews. See all customer images. Most recent customer reviews. Published 25 days ago. Published 3 months ago. Belongs to the "Classics" category in time to come. Published 4 months ago. Published 6 months ago. Was recommended to me and I do like this book. Published 7 months ago. The book is profoundly Published 8 months ago. Amazon Giveaway allows you to run promotional giveaways in order to create buzz, reward your audience, and attract new followers and customers.
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