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Category Archives for System Development

Higher Time Frame Stops Strategy Tool

This article deals with a tool to help you test various stops when building trading systems in TradeStation’s EasyLanguage. This topic is really a part 2 of the article, “Advanced Stops and Targets Strategy Tool“. In the original article the created tool called _Stops&TargetsAdvanced is a simple strategy based on an existing TradeStation strategy called  […]

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Opening Range Breakout Trading Strategy Design and Implementation

The goal of this research is to find various set-ups and exit strategies that could be used for trading the opening range breakouts. The time frames we will be looking at are 10-min, 15-min, and 30-min opening range breakouts. We will focus our attention on the very liquid futures markets, in particular we will analyze the […]

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Disabling Trading At Profit Target or Max Stoploss

When building trading systems, particularly intraday trading systems, you often run into the special conditions where you might want to stop trading. Those two conditions are: 1) When a particular daily profit target is reached. In this case you have determined that when a particular dollar amount is reached in profit then no more trading should be done for […]

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The Myth of Scaling Out

MythicalCastle -The Myth of Scaling Out

— By Matt Haines from  Throwing Good Money After Bad A common tactic for some traders is to scale out of successful positions. The logic is this: I’ve already made some money, so I want to hold onto some of that. I’ll cash out a portion of my trade now, and see how the trade continues, but […]

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Intermarket Divergence – A Robust Method for Signal Generation

Many markets are interrelated. These interrelationships can offer predictive capabilities for many markets. The study of these interrelationships is called intermarket analysis. In this article I will briefly explain a robust method for generating robust signals for a wide range of markets. I will also offer a free TradeStation tool to help you explore intermarket […]

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Improving The Summing Strategy

In a recent series of articles by Kevin Davey, a method of combining multiple trading strategies into one single strategy was presented. Kevin’s concept is a great way to tackle the issues of trading multiple systems on the same instrument. Kevin’s technique is to create a “summing” strategy where there is one single buy or sell signal and the […]

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When To Go Short: S&P Intraday Price Study

When To Go Short: S&P Intraday Price Study

This article is going to be an extension of a previous article where we performed an intraday price study. We do this by exploring different market sessions to determine if we can find an edge for a possible intraday trading system. If you have not read the previous article, When To Go Long, I urge you […]

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Statistical Analysis For Exits

As system designers, we hit the problem that whilst it seems relatively straightforward to develop entries and then test them against arbitrary exits, the reverse is a lot trickier. I have found out that doing some very simple statistical analysis can help in exit rule development. Over the years it has appeared to me that […]

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When To Go Long: S&P Intraday Price Study

In this article I would like to perform an intraday price study to explore the intraday action of the market to determine if we can find an edge. I’m going to be using the S&P E-mini futures market, but the principles here could be applied to any market. In particular, I’m interested how different times of the day affect different […]

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Take Profit Seasonality on Overnight Trading

Take Profit Seasonality on Overnight Trading

I have always thought of a simple exit at the next days open for nightly trades on ES future to be the most simple and non-optimized exit. There is no risks of data-mining biases. This is what I always do until now at Nightly Patterns. Overnight behavior changes with the market’s regimes of volatility. Nobody can […]

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