We believe backtesting is crucial to have consistent success in trading. It makes you disciplined because it forces you to write down specific trading rules. This way, you can see if your strategy has a positive expectancy. We suspect most traders don’t have a positive expectancy because they use anecdotal evidence and focus more on…
Since the emergence of the internet, algorithmic trading has come to dominate the financial trading world, but what percentage of trading is actually algorithmic? About 60-75 percent of overall trading volume in the U.S. equity market, European financial markets, and major Asian capital markets is generated through algorithmic trading, according to Select USA, in 2018….
Competition in the financial markets is huge, and staying ahead of the curve is crucial for traders seeking an edge. This pursuit has led to the rise of algorithmic trading strategies, which harness the power of cutting-edge technology and sophisticated algorithms. Algorithmic trading has revolutionized the way financial transactions are executed, offering traders unparalleled speed,…
In your day-to-day life, before you buy anything — a mobile phone, a house, or a car — you would want to check its features and history to know if it is worth your money. That also applies to trading, but here, what you check are your trading strategies. With a wide range of markets…
As a trader, you don’t want to do the hard work of monitoring the screen all the time and analyzing price movements looking for trade setups. This manual way of trading can be extremely hard and even prone to mistakes based on emotional and psychological biases. Moreover, there is a limit to how much data…
You’ve probably heard much about mindset and risk management if you’re an aspiring trader. While these are essential factors in successful trading, they’re not the only things you must focus on. In fact, our opinion is that too many traders put too much emphasis on these aspects and not enough on something even more critical:…
News and Trading With the availability of online news sources, including social media and trading forums, we consume a lot of irrelevant news that has no value to our trading success and may even be toxic to our minds. How important is news to trading? As traders, we know that certain news can help us…
Many of the best traders use some kind of mechanical trading strategies and rules when trading. “Mechanical” implies that the rules are based on objective rules, usually quantified data. The trader should follow these rules precisely without hesitation or emotion. In this respect, mechanical trading is the complete opposite of discretionary trading. In this article,…
Is strategy optimization good in trading? Are optimizers error maximizes? Do small input errors result in large output errors? Strategy optimization in trading is good if done correctly and below you can read how to optimize a trading strategy. Optimization has negative associations for many traders, just like curve fitting, but optimization done correctly can…
The use of Artificial Intelligence (AI) has been on the rise in different industries, and the financial markets are not left behind. Trading has evolved over the last decade, and institutional investors use artificial intelligence trading strategies to get the best out of the markets by leveraging the technology’s ability to analyze vast volumes of…
