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  • Analyzing Pairs with Correlation and Cointegration

    A chart showing gold, silver and their correlation  

    Pairs Trading or Market Neutrality have long been seen as complex hedge fund style strategies with limited application...

     

  • Trading Luck

    The equity curve of this backtest marches consistently upward. The final return is 8% after 6 weeks.

    Check out the results of this backtest. It produced an 8% return in only a six week period. The equity curve makes it look...

     

  • Annoying Backtest Surprise

    The strategy looks deceptively appealing. It's completely useless.

    The first backtest results are in from segmenting my price-SMA cross forex strategy. Looking back, I really should have pre-researched...

     

  • Probability Trailing Stop

    The equity curve for a probability trailing stop on Exxon (XOM) for Q1 2009.

    Generic trailing stops maintain a steady pip distance between the most favorable price seen and the stop loss. One thing...

     

  • Neural Network

    Figure 1: An example of a neural network propagating results forward.

    Neural network is one of the more recent buzzwords in trading. It sounds cool and sophisticated. Not too many people seem...

     

  • Backtest Spread

    Backtest Spread

    A common question among MetaTrader users comes from backtest results that appear to change for no reason. Without changing...

     

  • Renko Backtests

    Change your backtest settings to use not only Renko charts, but also Bid data.

    Exotic bar types, as NinjaTrader likes to call them, create unique challenges when backtesting strategies. The primary problems...

     

  • EA Development

    EA Development

    Building forex trading systems is the reason that this company exists. Nearly every one of our clients aspires to be a fully...

     

  • Signifigance Testing

    Signifigance Testing

    I recently had someone from Portugal approach me with an Expert Advisor that he programmed. He felt that it was successful...

     

  • Strategy Decay

    Strategy Decay

    Ernie Chan wrote a great blog post today on the life and death of a strategy. He talks about some of my favorite points:...

     
 
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