Just a quick post to say THANK YOU to the readers of this blog, who are spread across 50 different countries or the world. The power of the Internet!
Deciding when to place a trade may be the thing that gets all the attention but it’s probably less than 10% of the trading puzzle. You don’t make any money entering a trade, you make it when you exit the trade and bank the profit or minimise the loss. Continue reading
At the core of any trading system is the “Buy / Sell / Wait” decision. It’s the chunk of logic, be it intuitive, rule based or hard coded, that decides if a trade is going to be placed or not. In this post we will look at how we can break down what can be a complicated decision, into a series of logical steps. Continue reading
Previously we looked at how often and when your robot might want to look at price data, now I want to start to discuss what your robots needs to think about in order to make the trade / no trade decision Continue reading
We have been looking at the drivers that make price move but for now I want to change subjects completely and look at the basic building blocks of a trading robot. Continue reading
In part one we looked at two of the forces that can make price move; simple price discovery and fundamental news. In this post we are going to look at three more; technical levels, sentiment and over-reaction. By thinking about why price moves we can start to identify the type of movement we want our trading robot to capture and the type of movement we may want to avoid! Continue reading
The purpose of a trading robot is to try and make money from a price movement, either by reacting to that movement or anticipating it. But have you considered what makes price move? Is it largely random, meaning that trying to anticipate a movement would be futile, or is there method in the movement madness? Continue reading