Repainting indicators are one of the most common problems facing would-be EA designers. Sometimes it seems like an indicator really has its thumb on the market. It perfectly predicts when the market will go up or down. Making an EA run off of the indicator is a no-brainer. If this sounds familiar, then you need […]

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One of the most frustrating things about constructing a trading system can be the absolute freedom to use whatever indicators and values you like. While this can initially sound positive, the virtually limitless combinations of variables can become quite overwhelming. For example, if you like the concept of the SPY 10/100 SMA Long Only System […]

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All of the EAs that we program generally use one of three types of money management. I don’t really like that term, though. I believe that position sizing formula is generally more accurate. The options are: Fixed Lot Size Use a percentage of available margin Lose a certain percentage of the account balance whenever the […]

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The Multiple Day Mean Reversion System is designed to pick up quick profits from ETFs that wander a little too far from their current trend. It is based on the mean reversion assumption that all markets will eventually revert back to their average price. Similar to the 3 Day High/Low Mean Reversion System, this one […]

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Simple systems stand the best chances of succeeding by not becoming overly curve-fit. However, adding a simple filter to a robust system can be a great way to improve its profitability, provided you also analyze how it may alter any risks or biases built into the system. The Moving Average Crossover System with RSI Filter […]

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The double top pattern is no doubt among the simplest and most familiar price patterns in technical analysis. Typically, a double top pattern is followed by a sell off. In theory, this rather simple pattern should be easy for traders to pounce on and yet, too often, it’s a cause for frustration. That’s because the […]

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How many times were you certain of that one trading signal that told you that a trend was over? Or what about the one that indicted a trend was just about to begin? Of course, that “prophecy” was eventually dispelled and the market turned against you. It probably happens quite a lot, maybe even more […]

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In order to be successful, forex traders need to know the basic mathematics of probability. After all, it’s difficult to achieve and maintain trading gains without first having the ability to understand the numbers and measure them. Many traders use a combination of black box indicators to develop and implement trading rules. Yet, the difference […]

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Through this column we have covered many oscillators which are generally very effective in analyzing momentum; they include the Average True Range, MACD and the VIDYA. Some oscillators are better at predicting short term momentum, while some are lagging indicators and tend to shine brighter when it comes to long term momentum. Yet, in this […]

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A double bottom that fails to hold, resistance that gets sliced in a heartbeat or just a trend that surprisingly breaks. Those are just a few of the“nasty“ pitfalls that nearly every trader regularly encounters. Those pitfalls are seemingly out of the blue but are, in fact, just a result of another dimension acting in […]

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