Trading Order Out of Chaos
In the previous article we set out to cover a new asset class: Bond investments. We saw how by including bonds together with stocks we could improve on our portfolio performance. Is this mixture still good given that we are now shifting in the interest rate cycle to a Bond Bear Market? In this article we […]
Of all things on this planet?! Aren’t they boring? Not explosive enough? Isn’t this stuff what old people invest in? Also, aren’t they supposed to start to sell-off? And how do you get your hands on these over the counter instruments. In the first article of this series on Creating Profitable Trading Strategies we started […]
In previous articles I’ve written about the idea of Kelly betting or using leverage to really boost the growth of your returns. I’ve also shown how different fundamental components work together to create an FX Benchmark index. This article is slightly different. I want to keep it KISS: “Keep It Simple Stupid.” I will show […]
I understand how tedious it can be to have to manually write all the trades out. And MT4 is the worst at making your trade history accessible. This script will produce a csv file of your entire account history. It will enable you to ask some pertinent questions and work out relevant stats. You’ll find details on calculating the right trade-stats in the blog posts on this site. The output is stored in the C:\Users\XXX\AppData\Roaming\MetaQuotes\Terminal\<Funny Hex Number>\MQL4\Files dire…
In this second part of the Mean-Reversion in Equities series we’ll cover the reasons behind why mean reversion works in various market regimes. In the previous article we combined the idea of looking at two consecutive down-days combined with buying the S&P 500 while it was below its five day moving average. A question that stands out: why does it work so well? And, will it ever stop? The answer to this question lies at the heart of developing good trading strategies.What’s a …
This XLS shows the calculations which were performed in the Kelly Criteria article. The data included are the SPY ETF historical prices as well as the backtest results from the London Breakout Strategy applied to the EURUSD. Here you can see how to calculate the optimal leverage on your favourite asset class or your favourite trading strategy. Please read the article to see what the caveats are and what riding out a full Kelly might possibly lead to.
This spreadsheet goes in tandem with the article on Trading Like a Hedge Fund Manager. The charts are replicated in here, as well as the calculations, so you can follow along. The data is taken from finance.yahoo.com for the ETF products SPY, AGG, and GSG. Kelly betting is applied to maximize the returns.
It’s useful to be able to add a trailing stop to your trades. Given I never got my head around the MT4 functionality I wrote this small EA, which does the job. Place it on top of the currency chart and give in the number of pips by which it should trail your trades. You need to put it on currency charts for which you have trades. So if you have USDJPY trades put the EA on an USDJPY chart. This EA will not trail stops for trades that have a non-zero magic number. So if you have trad…