Category Archives for Video Vault

How to Become an Algo Trader in 3 Easy Steps

Becoming an Algorithmic Trader isn’t as difficult or complicated as you might think. By following the steps outlined in this post and video, I believe any trader can become or switch their trading to algorithmic.

Algorithmic Trading to me is simply having a fixed set of trading rules. These rules make up individual or collective trading strategies. You can trade these rules by manually monitoring the charts and placing trades when entry and exit conditions occur.

Better still, with a little bit of programming knowledge you can program the rules into your trading software. This enables you to run the strategy rules on historic price data to see how the strategy “would have” performed had you been trading it in the past. Many softwares allow you to the automate those rules meaning it trades for you as the signals to enter and exit come along.

Algo or Algorithmic Trading has a few different names depending on who you are talking to. It’s also sometimes called “automated trading” or using a “trading robot” or “bot”. Metatrader 4 (MT4) users sometimes call them “Expert Advisors”

The 3 Steps:

STEP 1: STRATEGY & CODE

Firstly you need a trading method or strategy. This is a set of hard rules comprising of at least when to enter and when to exit the trade. Once you have those rules figured out in plain English you can then transfer them into code for your software.

Here’s an example of a rule based trading strategy https://www.youtube.com/watch?v=bPxGP_yZYDw

Personally I use Multicharts as my software choice. But there are many good ones to chose from including Tradestation, Metatrader, Ninja Trader, Ami Broker just to name a few.

STEP 2: LET’S TRADE

You should now be at the stage where you have your strategy programmed and you’ve been able to back test it on some past data. For Forex strategies I like to go back at least 10 years. Once you are happy that the code is working correctly and the strategy performed how you want it, it’s time to turn on automated trading.

With Multicharts it is pretty much as simple as clicking one button to start automation. Make sure you have your position size inputted correctly too. With a connection to the price data and broker, Multicharts can now look for buy and sell conditions and send them to the broker once met.

STEP 3: MONITOR

With any type of trading whether it’s Algorithmic, Discretionary, Scalping or others, you always need to monitor performance.

Trading Algorithms can and do stop working for various reasons. They might work for 10 years or maybe just 10 weeks. It’s your job as the trader to monitor each strategy to make sure it’s still performing well.

Personally I like to monitor each and every individual strategy I have running on a monthly basis.

Watch the video to give you more insight and check the video links below the video for more ways to help your algorithmic trading career.


Learn how to program a trading strategy here: https://youtu.be/SLuz4ogO0p8

And learn how to create your own trading algorithm from scratch here: https://youtu.be/j_UkjbJ48-o

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.

BackTesting Secrets – How to Avoid Common Mistakes

A huge part of my job as a system or algorithmic trader is Back Testing. This is the process of applying your trading rules to past data to see how the strategy “would have” performed.

Possibly.

There is a catch. Back testing will never replicate live forward trading completely, but as you become more experienced you will learn the important factors to look out for in order to make the back test look as close to live trading as possible.

In this video I show you one common mistake I see often made. A mistake which can turn what looks like a great strategy with a nice equity curve into a total money-loser.

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.

3 Ways to Trade the Markets in your Spare Time

Trading doesn’t always mean sitting at your desk looking at a screen for 8 hours a day.  It is very possible to trade successfully on a part-time basis too.  You can even choose at what time suits you!

In this video I explain 3 ways in which you can trade in your spare time.  All three ways work and I know first hand because I’ve used them all.   Watch the video to learn more.

 

 

 

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.

Free Forex Strategy Review – 4hr Outside Bar Part 3

This is the third and final part of this series in which I test an outside bar strategy found on the internet for free,  on USD/JPY.  In the first part I showed you the rules and then began testing the best time period of the day to take the trades.

The performance was pretty terrible.  If you haven’t seen that yet you can watch it here:  Part 1

In the second part I looked at the stop loss and take profit levels.  After those I introduced a different type of exit.  Unfortunately I still couldn’t make this strategy work well enough. Part 2

In this final part of the video I continue using the new exit and try to find the best times of the day to trade.  Then I introduce some new filters taken from the daily timeframe.  Lastly I put the strategy to test using some out of sample data.  Data more recent than the data used to originally test and develop the strategy, to see how it performs going forward.

Finally I conclude with my thoughts on this strategy and this entry signal as a whole.

 

 

 

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.

Free Forex Strategy Review – 4hr Outside Bar Part 2

This is the second part of this series in which I test an outside bar strategy found on the internet for free,  on USD/JPY.  In the first part I showed you the rules and then began testing the best time period of the day to take the trades.

I used a fixed 100 pip stop loss and take profit to start with.  Unfortunately the results were far from tradable!  Here’s the link to the first part if you haven’t seen it yet:  Part 1

This time I look into those stop and take profit levels and then introduce a timed exit.  Watch the video to find out how it works out..

 

 

 

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.

Free Forex Strategy Review – 4hr Outside Bar Part 1

Welcome to the third video series in which I give you an over-the-shoulder look at how I backtest and improve mechanical trading strategies.

In this first video I begin to code and test a free trading strategy found on the Forex Factory forum.   It’s a strategy for trading Forex on a 4 hr timeframe.  In this series I am testing USD/JPY.

I did a previous series which I used the same strategy but tested on GBP/USD.  You can see that HERE.

The Rules:

Long Trades:

  • The setup bar has to be above the 30 period EMA on the 4hr chart
  • The setup bar has to be an Outside Bar
  • The setup bar has to close above the open
  • If all conditions are met then buy the next bar at the open

Short Trades:

  • The setup bar has to be below the 30 period EMA on the 4hr chart
  • The setup bar has to be an Outside Bar
  • The setup bar has to close below the open
  • If all conditions are met then sell short the next bar at the open

Stop losses and Exits were a little vague.  So I plan to test a number of different methods I know have proven to work for different strategies in the past.

 

 

 

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 Backtest a Day Trading Strategy – Hourly Breakout Part 3

Welcome to this third and final part in the series in which I give you an over-the-shoulder look into a trading strategy development process.  I test and develop a trading strategy to show you each step of the process.  By the end of the development I hope to have a useable strategy, something that you may also consider trading.

In the first part of this series I outlined the rules of the strategy and began the development stages.  If you haven’t seen that video yet then you can see it here: PART 1

In the second part I looked into how trading each day of the week effected results.  Then looked at the duration or time window we could take the trades.  Lastly I introduced a previous day filter.  Looking at what happened if the previous day was a white or black candle.  If you haven’t seen that one then you can watch it here: PART 2

In this third part of the development I look at the level at which the breakout entry will occur.  I use a multiple of the High to Low range.  And lastly, once I have some results I am happy with, I go on to apply the strategy to some out of sample data.  This is to see how the strategy would have worked in unseen forward data.

 

 

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 Backtest a Day Trading Strategy – Hourly Breakout Part 2

Welcome to another series in which I give you an over-the-shoulder look into a trading strategy development process.  I test and develop a trading strategy to show you each step of the process.  By the end of the development I hope to have a useable strategy, something that you may also consider trading.

In the first part of this series I outlined the rules of the strategy and began the development stages.  If you haven’t seen that video yet then you can see it here: PART 1

In this second part I continue going through the development.  Firstly look into how trading each day of the week will effect results.  Then look at the duration or time window we can take the trades.  Lastly I introduce a previous day filter.  Looking at what happens if the previous day was a white or black candle.

 

 

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 Backtest a Day Trading Strategy – Hourly Breakout Part 1

Welcome to another series in which I give you an over-the-shoulder look into a trading strategy development process.  I test and develop a trading strategy to show you each step of the process.  By the end of the development I hope to have a useable strategy, something that you may also consider trading.

In this video I outline the strategy rules on the whiteboard then go ahead with the first stages of development.

Even after the first 2 stages, we have the start of a strategy with some promise.

Here’s the rules for the strategy we will be looking at:

We are trying to identify a time window within the trading session where we can take a breakout above the high or below the low of the session so far.

Firstly we start with a 1 hour time window.  Let’s imagine our time window is 1am to 2am.  At 1 am we look at the high and the low of the session so far.  The market we are looking at is USD/JPY and so the session began at 17:00 the previous day.

If within our 1 hour time window the high or low of the session is broken then we take the trade.  We go long if the high is broken and short if the low is broken.

We will use a stop loss.  And we exit the position at the end of the session.  So trades last less than 24 hours.

 

 

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 Backtest a Trading Strategy – 4hr Outside Bar Part 5

This is the fifth and final part in this series where I take a Forex strategy I found for free and backtest it.  I hope to make some improvements and by the end of the development process it could be a useable strategy.

If you haven’t seen the first part then you can watch that here: PART 1

If you haven’t seen the second part then you can watch that here: PART 2

If you haven’t seen the third part then you can watch that here: PART 3

If you haven’t seen the fourth part then you can watch that here: PART 4

In this video I continue the development process.  I change the dynamics of the strategy turning it into a intra-day strategy.  I do this by exiting the trades at the end of the day.  Again, I will look at some stable stop loss and take profit levels.  Watch the video to find out how it works.

 

 

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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