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Category Archives for System Development

The Art of Crafting an Automated Trading Strategy

For nearly every trader, there is one all-consuming question: How do you build a profitable strategy? Naturally, one would expect to dive straight into the statistics and begin crunching the numbers. Yet, before we delve further into the mechanics – and believe me there are plenty – I want to talk a bit about the […]

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Strategy Testing – Violating These Steps Will Damage Your Account

One of the most rewarding experiences for a TradeStation trader is to pick up a performance report that proves their great strategy idea is indeed a profitable strategy. Strategy testing done properly, as is outlined in this article, can verify the efficacy of your trading strategy and give you confidence to start trading it. But be forewarned, […]

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The Christmas Strategy Remains Bullish

With Christmas about four weeks away, I thought it would be interesting to see how the S&P behaves in the days just before Christmas. Do the days just before this holiday tend to be bullish, bearish, or neutral? To test the market behavior just before the Christmas holiday I will use the S&P Cash index back […]

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Market Seasonality Study

November is here and that means the start of a historically strong period for the U.S. markets. This is a well known seasonality period which runs from November to May.  While it’s true the U.S. markets experienced a Death Cross formation not very long ago,  the market has since rebounded nicely. The Death Cross formation is still in […]

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Better To Buy Strength or Weakness?

Emotionally it’s a lot easier to buy on strength than to buy on weakness. Buying into a falling market feels unnatural. Your instincts warn that price may continue to fall resulting in lost capital. On the other hand buying when the market makes new highs feels more natural. Price is moving in your direction and […]

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Step One In Building An Intraday Trading System

If you have been reading System Trader Success for a while you’re probably familiar with how I develop trading systems. The very first step is to come up with a simple idea to act as the seed or core of your trading system. I call this your key concept. This key concept is a simple […]

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Using EasyLanguage To Limit Trades

In this article I’m going to demonstrate an EasyLanguage technique to limit the number of trades your trading system will take within a given period. Most often this is done to limit the number of trades a strategy will open in a single day. For example, you may want your day trading strategy to only […]

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Beginner’s Guide to Quantitative Trading

Quantitative trading

In this article I’m going to introduce you to some of the basic concepts which accompany an end-to-end quantitative trading system. This post will hopefully serve two audiences. The first will be individuals trying to obtain a job at a fund as a quantitative trader. The second will be individuals who wish to try and set […]

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Two Dimensional Market Environment Filter

In this article I’m going to demonstrate a technique to help adapt your trading systems to the changing market conditions. In a previous article entitled, “Trend Testing Indicators“, I tested several indicators that could be used to divide the market into two modes: bullish and bearish. These two modes were then used to dictate how […]

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Optimizing Your Algo: Tips for Beginners

You have created a trading algo. The Algo is profitable in the backtester. Before unleashing it with real money, you’ve got to first tighten the screws. That is, ensure your algo is fine-tuned so it can deliver optimal returns. There’s one major challenge ahead of you. Firstly, your strategy is rather simple. You may go […]

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