Category Archives for Strategy

How to Easily Code a Trading Strategy – RSI2 / Multicharts

In a previous video I showed you an effective way to make money trading the S&P 500 using a very reliable indictor; RSI.  If you have not yet seen the video then you can watch it here

The strategy which I learnt from Larry Connors works by taking advantage of the S&P’s tendency to revert to the mean on a daily timeframe.  Today I am going to show you exactly how to code or program the strategy into my trading platform, Multicharts.  If you’re curious about what it takes to code a profitable trading strategy so you can then backtest or even trade in an automated way, then I think you’re going to love this video.

I will walk through the code explaining each step so by the end of it you’ll have a very good understanding how Multicharts’ language works.  Multicharts, by the way uses a very similar coding language to Tradestation.  So you can apply this code to Tradestation too.  Once you have the code you can then backtest the strategy on different markets, make small adjustments to entries and exits and create optimisations.

The code is available on the internet but I have written it myself to simplify things as much as possible.

Watch the video now:

 

Here’s the code that I wrote out in the video which works in Multicharts:

// Code for RSI2 Daily strategy Long Only

// Entry

If marketposition = 0 and ( RSI(Close,2) <= 10 ) and

( Close > Average(Close, 200) ) Then buy this bar at Close;

// Exit

If marketposition = 1 and ( Close > Average(Close,10) ) Then sell this bar at Close;

I hope what I have showed you doesn’t appear too complicated.  Profitable trading strategies don’t necessarily have to be complicated, it’s often a myth!

I would encourage you to have a play around with Multicharts yourself.  They actually offer a free 30 day trial.  You can get that here:  https://www.multicharts.com/  By the way, I am not affiliated what so ever with Multicharts, I just love the platform!

In the next video I will continue with the code we’ve just created and look in detail at the results of the strategy.  I’ll explain the Performance Report accessible in Multicharts.  Showing you all of the important charts and numbers gathered by the software and how and why they are important when really trading.

As always, if you have any questions about it then please ask.  Comment or email me jarrod@thetransparenttrader.com

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

Here’s my Real Trading Setup – Multicharts / Oanda / IB + Free Forex VPS

Today’s video is in response to a request from a fellow trader and subscriber of my channel.   In a previous video I showed you all the relevant software which makes up my trading setup or infrastructure.  In today’s video I am going to actually show you on screen how that infrastructure looks.

So if you’re curious about my setup, Multicharts, or using a VPS (Virtual Private Server) to host your trading platform then you’re going to enjoy this video.  By the time you’ve watched the video you will know exactly what is needed to run an automated trading setup, but more importantly, one that actually works!   

I’ll be showing you:

  • Multicharts
  • Oanda data feed (and Oanda historical data)
  • IB Gateway
  • Interactive Brokers
  • All running on a free Amazon VPS

I’ve been using Multicharts to trade automated live for years now and it’s very reliable.  Of course there are many other options of platform, data and broker but I can tell you first hand that what you see here is a fully working set up.

Another thing that’s worth me mentioning here is that all my strategy development work is done not on my trading server set up but on my laptop locally.  I have Multicharts installed which I use offline to develop using past data already saved.  I am a Mac user but Multicharts is a Windows only software.  If you’re curious about how well Multicharts runs on a Mac then I may do a future video about that too.

I hope you’ve enjoyed the video and if you have any questions then leave a comment or email me jarrod@thetransparenttrader.com and I’ll get back to you.

Jarrod

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

Trading Setup Which Works! – Multicharts/Interactive Brokers

What I am going to share with you today is my own trading setup, specifically the software.  You’re going to love this video If you’re looking for backtesting software or want to go even further and fully automate your trading.

I’ll show you my real working trading infrastructure including how to set it up and what costs are involved.

Upgrading to Multicharts trading software a few years ago was a total game changer for me.  At first I was excited to have the ability to backtest strategies within minutes and optimise and develop new ones which suited my style and beliefs.  But then I realised I could automate the whole trade placement process.  The ability to automate things means I have no time limitations what so ever.  So I can trade the likes of forex 24 hours a day around the clock.

That doesn’t mean that I make hundreds of trades throughout the night, but it does mean if I find a profitable setup in a market which happens to occur when I’m sleeping, the software can take the trade for me and I won’t miss out.

Essentially there are 5 parts to my trading setup:

  • Trading software – Multicharts
  • Data feed for Multicharts – provided by Oanda
  • My broker – Interactive Brokers
  • Connection between Multicharts and Interactive Brokers – IB Gateway
  • Machine to host Multicharts – Amazon VPS

Let me explain.  Multicharts is the trading platform.  This is where I can write code or program strategies.  Then I have the ability to backtest, optimise and switch on auto trading.  The software probably does way more too but that’s just what I use it for.

For Multicharts to work with backtesting it needs some price data for each market.  This is then imported as past data and can have a live feed for real time trading too.  There’s many options for data providers.  I personally use Oanda.  They provide data for FX for free.  It’s reliable data too.

If you want to trade manually or automated through Multicharts you have to connect your broker to the platform.  My broker is Interactive Brokers.  And whilst you can connect without the use of an additional piece of software called IB Gateway, I prefer to use it.  There’s no charge for this either.  IB Gateway frees up some computer memory and makes for a more reliable connection.

The last part of the setup is the computer which it all runs on.  For this I use a VPS or Virtual Private Server.  I use a fairly low power server provided by Amazon on their Free Tier.  I’ve used them for the past few years and it’s been extremely reliable.

If you are just using Multicharts to backtest strategies then you can just run it on your own home computer.  You can even use it for automated trading on your own computer too but you are subject to power outages and dropped internet connections etc which aren’t a problem when using a VPS.

To access my VPS I use a piece of software called Microsoft Remote Desktop.  I log into my VPS and use the computer as if it was my own local machine.

To add everything up, my current setup costs nothing to run.  However that’s because I bought a lifetime licence for Multicharts.  The current price for this is $1497 however they also offer it on monthly tariffs.  It was a great investment for me!

There are many other backtesting and auto trading options out there which all have their pros and cons.  I’m just sharing with you what’s been working for me for years and what it takes to set things up.

I hope this video and write up has be useful and not too confusing. As always, if you have any questions about it then please ask.  Comment or email me jarrod@thetransparenttrader.com

Jarrod

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

Simple “TDOM” Method to Trade EUR/USD + Other Markets

 

In Today’s video I am going to show you a very effective and easy way to trade EUR/USD.  But you can apply this principle to any market you want to trade and I’m going to show you how.  It’s a trading strategy or technique I learnt from Larry Williams so this one I owe much credit to him.Although this example has my spin on things as Larry doesn’t trade Forex.

By the time you’ve watched the video you will understand this powerful technique used not only to trade EUR/USD but to go and test on other markets you want to trade and profit from.  I have managed to develop strategies on multiple markets using just this one technique.

The strategy I am about to show you is called TDOM or Trading Day Of the Month.  I’ve tested many markets in the years I’ve been trading including Forex, Indices, and Futures and have discovered that they all have their own behaviour patterns or biases.  One of these patterns we can profit from is TDOM.

So how does it work?  It’s very simple.We look of a testing period, let’s say 10 years.Then for each trading day (this doesn’t include weekends, holidays) we can see how many points the market gained or lost within it’s session.  It’s easy to plot that data into a graph like a bar graph where we can see visually how each trading day performed.

Once we have identified the strong and weak days of the month we can then build a trading strategy around them.  The simple strategy I am going to show you Buys EUR/USD at the start of the session on trading day 8 and exits at the end of the session.  At the same time we actually Short the market at the start of the session on trading day 9 and exit that short at the end of the session.

It just so happened 2 strong Long and Short biased days were consecutive.  But that’s not always the case.

You can take this a step further too.  If you don’t want to be in and out of the market in the same session then you can often find groups of “up” days and groups of “down” days.  I have strategies built around groups of up to 5 days which are biased to either the long or short side of the market. These groups are easily identifiable from that bar graph plotted earlier.

I hope you can see the potential in this technique I have learnt and further developed from Larry Williams.  I encourage you to do some testing for yourself on your market of choice.  Something I will note is that I haven’t tested on individual equities like most of my mechanical strategies.

If you like or have any questions about this strategy then please ask.  You can comment or email me jarrod@thetransparenttrader.com

Please like and share if you found it useful and subscribe to my Youtube channel.

Jarrod.

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

How to Trade the S&P 500 Using Mean Reversion

 

 

In today’s video I am going to show you how to build a simple trading strategy that wins over 85% of the time.  It trades off of the daily chart and has just two rules.  If you are exploring mechanical based trading as a way to become consistently profitable or if you are looking for an additional strategy to your already mechanical trading portfolio then I think you’re going to like what I am about to show you.

I’ll show you the entry and exit signals over on my charting software and then some performance figures over the 13 years that I have tested the strategy on.

It uses Relative Strength Index Indicator to identify the signals.  Much credit goes to Larry Connors and Cesar Alvarez for introducing me to this trading strategy.  The strategy successfully takes advantage of the S&P 500’s Mean Reversion tendencies on the daily timeframe.

This is a follow up to a previous video on technical indicators.  I touched on this strategy I am about to show you and I have been asked for more information.  Well that’s what this video is for.

Watch the previous video here:

http://www.thetransparenttrader.com/blog-articles/the-one-technical-indicator-you-can-trust/

Watch today’s video where I demonstrate the strategy.  And I have also put together a PDF guide to using this strategy which you can download for free:

http://www.thetransparenttrader.com/wp-content/uploads/2018/08/RSI-Strategy-Guide.pdf

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

Is This The Only TECHNICAL INDICATOR You Can Trust?

I’d like to talk about indicators.  To share some of my knowledge of what works and what doesn’t work when trying to time the market in our quest to make money.

Firstly I’d like to say that the vast majority of my best trading strategies do not use indicators at all.  However I will finish off by telling you about the most reliable indicator I have tested and used to date.  And it’s dead simple. Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

Discover Step by Step How I Went From Constant Loser to Consistent Profits – 3 Part Series

PART 1

Learn How 10 weeks Travelling TRANSFORMED my Trading Career (True Story!)

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This is a personal story.  This is how I went from constantly losing money trading to consistent profits.  It’s taken me many years but it’s surprisingly simple.  And over the next few videos I am going to break it down and show you what happened so you can have the same results too.

It all started with buying UK shares.  And I actually got lucky!  I Picked the right company at the right time and banked some profits.  But it was definitely luck!  I had gotten ideas and tips from magazines and friends and they had worked well.  But I wasn’t happy.  I wanted my own ideas, my own trades.

A year or so goes by and I’ve read lots of books.  I became intrigued by Technical Analysis.  I loved looking at price charts and all the indicators and oscillators.  I went through a long period of trying out different setups using these indicators largely on a discretionary basis.   But, you guessed it, nothing worked consistently.  I’d have a few good small profits only to be hit by 1 loser which wiped the profits out!  Know where I’m coming from?

But I never gave up!  Luckily, I had it drilled into me at an early stage of reading books not to risk too much of my account.  So although I lost a lot of trades, I was still in the game!

Then I took a well deserved break.  I up and left to travel across the United States of America.  Crossing about 8 states in 10 weeks.

I done lots of thinking and during the last couple of weeks (I believe I was in Texas at the exact time) I decided to write an email to a trading coach asking for help.  We agreed terms and I planned my flight back home to the UK with a fresh trading head eager to learn.

What he taught me was eye opening and exciting.  Life changing in terms of trading performance.

In the next video I’m going to show you in about 5 minutes what my trading coach taught me in over 5 hours over 5 months!

I’ve simplified and pulled out all the best bits to produce something which might just change your trading life too.  (I’m pretty sure it will!)

I’d love to hear what you have been doing which isn’t quite giving you the results you want yet.  What are you struggling with?  What sort of methods have you been trying?  Please leave a comment on the video.

PART 2

Discover What Transformed my Trading Career FOR EVER! (You can too)

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Today I’m going to reveal what my Trading coach taught me over a period of about 6 months.  But don’t worry, it’s not going to take that long.  I’ve simplified things and its all here in a short video so you can make a transformation too.

In the previous video I told you the true story of how I went from constantly losing until I met my coach who spun things around to get me on the path to consistent profits.  Some of you might resonate with the struggles I was having.  If you haven’t yet watched the video then check it out first above.

You’re probably wondering how what he showed me transformed my trading.  Here’s some of the benefits which work so well and benefits you can enjoy too:

1. CONSISTENCY – I now have a real plan and solid method for each and every trade I make.  I’m not hopping around trying different methods or techniques each week.  I know what works, and I’m following that plan.

2. REDUCED STRESS / EMOTION –  With a solid plan I now know exactly when and where to enter each trade and probably more importantly, where to get out of that trade!  I know which markets to trade and how much money to risk on each trade.  All of these clear, pre defined factors lead to a much less stressful trading experience.

3. INCREASED CONFIDENCE – The methods I now trade are proven to work in the past.  This can be clearly seen from the numbers and track record.  Having the ability to see how well the method has worked in the past allows me to be confident to trade.  No more doubt or hesitation over which trades to take.

4. INCREASED PROFITS! – All of these benefits lead to the most important part which is why we all trade in the first place;  to make money!

Now you’ll have to click on the video above in which I show you the foundations and a great example of these methods I am using.

What you see in the video is just one method I have developed to trade just one market.  There are loads of markets and even more methods.  As you collect more and more methods or strategies and apply them to different markets, you can build a portfolio.  A nice portfolio collection can lead to a very nice increasing equity curve of your trading account.  Which I think you’ll agree, is one of the main goals of trading after all!

If you’re anything like me, you’ll now have the next big question in your mind:  Where do we find these methods or strategies?

I’ve spent years looking for and developing my own strategies and ideas and in the next video I’m going to show you exactly how you can find them too.

Hopefully what I’ve shown you has made sense.  Please leave comments or questions on the video.  Has it made sense?  Is this method of trading something you think can work for you?

PART 3

3 FREE Best Trading Strategy Resources

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In today’s video I reveal some of the best places for you to find profitable trading strategies.

Last time I showed you how my trading profits went from negative to consistently profitable by using a simple method my trading coach taught me.  If you haven’t already watched that video then I suggest you do.  There’s some great eye opening info there.  Watch the above video now.

I have shown you a mechanical trading strategy that I developed.  And I think you will agree, there’s nothing overly complicated about the implementation.  And it really works!  Most of my trading strategies and many of the best ones you can find are quite simple but robust.

Without having to go through the process of developing your own profitable mechanical strategies, can you find some already tradable? Yes.  Here’s where to find them:

1.  BOOKS – To start with I recommend checking out material by Larry Williams,  Larry Connors, and Courtney Smith.  There’s many more out there but I personally have gained a lot from each of these traders and I think you will too.

2.  WEBSITES – Google is you friend for this one.  I’ve found quite a few nice trading strategies over the years on various sites.  One of my favourites is System Trader Success I don’t know the guys running it, I just like what they do.

3. PODCASTS – There are a handful of very good podcasts and I’ve been introduced to lots of interesting traders through them.  My favourites include Better system trader, Chat with traders and Trading story podcast

And good old YOUTUBE – With new content being uploaded all the time I’m sure there are some great strategies to be had from Youtube if you look hard enough.  Youtube isn’t in my top 3 but only because I haven’t really used it for finding strategies myself.

So now you know what makes up a mechanical trading strategy and you’ve seen an example of one that I have developed.  Plus now you have a good idea of where to go find some more suitable for you to trade.

What do you once you have found one?  Here’s what I do:

TEST!

You have the rules to the strategy and probably access to decent free price data.  Now you just have to back test the strategy and see what it’s performance is like.

Or you could take a short cut and just start trading it straight away.  But that’s putting way too much trust in the strategy creator and I certainly wouldn’t be comfortable doing that myself!

In Conclusion –

How You Too Can Become Consistently Profitable

 

If you would like to replicate my trading journey ( but shorten it considerably ) and it’s really pretty simple, then follow these steps:

  • Get a solid trading plan consisting of a Mechanical approach
  • Find ( or create your own ) profitable but also appropriate trading strategies 
  • Back Test the Strategies and make sure they really are profitable!
  • With use of correct Position Sizing trade the Strategies and enjoy the results
  • MONITOR STRATEGIES – Profitable Strategies don’t always work for ever so it’s critical to correctly monitor each one so you’re not trading a loser which drains your account

 

I hope this blog post and video series has been of some value to you.  The information I have shared really can change your trading career for the better.

Please share this post with anyone you think may also find it helpful.  Send the link or share on Social Media.

If you have any further questions then please comment on the videos or email me personally jarrod@thetransparenttrader.com

 

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

The Truth about Free Trading Strategies + REPORT

I have given away the rules to a very simple trading strategy for use in the Forex markets.  It’s a strategy I have used myself and profited from.  You can find the full PDF report including the rules and trade examples here:  Free Strategy

A viewer of my Youtube channel posted a question about this strategy.  He was interested in it’s recent performance.  So I decided to put together a collection of performance reports when testing 6 of the major FX pairs.

In the video you can see the individual reports and then a collection of the six in a portfolio.

 

 

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

A Year of Automated Trading – My Experience

In this post I want to share my thoughts and experiences after trading 100% automated strategies throughout 2017. Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

Uncovering the Hidden DANGERS of a Free (or any) Trading Strategy

One of the many wonderful features of Automated Trading/Testing software are the numbers in the performance report.  Understanding even just a little about what some of these numbers mean can save you from ploughing money into what looks like a great trading strategy.

I have created a video to show you a little more about some of the important numbers and the impacts on overall profit.

I found a free trading strategy on the internet.  The rules were well documented and I decided to code and test it for myself.  I always find it extremely interesting to test strategies other people are promoting. Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

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