Category Archives for Video Vault

How to Backtest a Trading Strategy – 4hr Outside Bar Part 4

This is the fourth 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

In this video I continue the development process.  I continue looking at Stop loss and Profit levels.  But this time rather than using fixed pip or fixed Dollar levels, I am going to choose a level related to the volatility of the set up bar.   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.

How to Backtest a Trading Strategy – 4hr Outside Bar Part 3

This is the third 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

In this video I continue the development process.  I look at choosing an end time to stop trading, stop loss levels and profit targets.

 

 

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 2

This is the second 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

In this video I show you the coded strategy on the charts.  I then start my first development and show you how the performance changes for the better.

 

 

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 1

New Series

 

I have decided to create a new 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.

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 Avoid a Blown Trading Account

I’m writing this article at the start of January 2019.  In the last few months I have observed many traders lose massive amounts of their accounts.

Interestingly though, many of these same traders had previously made some extraordinary gains prior to when the stock market declined starting around October 2018.

In the video I talk about the main reason this unfortunately happened.  I hope this hasn’t happened to you, but if it has then maybe there’s some takeaways here for you.

And if this didn’t happen to you or you aren’t trading yet, maybe what I show you could help prevent losses for you in the future.

 

 

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 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.