Article Library

In my loss making days I experiment with different trading strategies to bring me back in profit and this approach has helped me develop some trading styles which are quite reliable to bring decent profit while keeping the risk low. In this article I'll share one of such trading strategy which takes only 2 % risk of capital allocated for any individual trade and still manages to bring in return of more than 20 % (annualized). Also you don't have to worry about a string of continuous losses wiping account clean with 2% at a time as on average it does fewer than three trades in a month.
Idea in Nutshell
So I hope you would eager to get into details of it without any further delay. It's developed using the combination involving EMA of 10 candle period and EMA of 20 twenty candle period. It basically tries to identify the direction of trend of underlying instrument and then gauge the relative strength of that trend. It has been designed such that it is supposed to avoid taking trades in days of narrow sideways movement and trade only when there is a strong price action on a particular side caused by any fundamental or technical factors. So let's look into the design aspect…
Read article
Translate to English Show original
Sebine avatar
Sebine 24 Mar.


miss_natalia_77 avatar

Good )

yellownight avatar

good luck in contest

Sasha_spicy avatar

good job!

sharpsense avatar
sharpsense 31 Mar.

Good work friend!

orto leave comments

High frequency trading has been around since 1999, it started when the US Securities and Exchange Commission decided to authorize electronic exchanges in 1998. At the start of twenty first century the execution time of HFT trades was around several seconds but due to the advancement in technology, the time has dropped from 2-4 seconds to milliseconds or even microseconds. Outside the financial sector, high frequency trading was not known to many until an article published by New York Times on HFT brought the subject to few people's attention. So, here are some details on high frequency trading.
High Frequency Trading(HFT):

High Frequency trading or simply HFT is typically algorithm based trading characterized by high speeds, high order-to-trade ratios and high turnover rates. HFT's main features are highly sophisticated algorithms, very short-term investment horizons and specialized order types. Simply put, HFT uses super fast computers to execute many orders in a very short time, it uses complex algorithms to analyze different markets and open trades according to market conditions. In the year 2009, it was estimated HFT was accounted for about 60-70% …
Read article
Translate to English Show original
Milian avatar
Milian 21 Sep.

nice work

scramble avatar
scramble 25 Sep.

It's been said that these HFT machines can make a gigantic profitable return over a year with an impressive profitable ratio. Considering the huge costs for it to work, they are the clear representation of the sentence "money makes money, nothing makes nothing"

fxsurprise8 avatar

HFTs are great, they've drastically lowered trading costs

Illya avatar
Illya 7 Oct.

Another word about HFT!!! Very well!

Uladzimir avatar
Uladzimir 11 Oct.


orto leave comments
I personally do consider an R language and its library infrastructure the best tool for testing and verifying quantitative strategies before any coding is started. Before I’ve discovered R I was using Python and Numpy/Scipy/Pandas/Matplotlib library-four for my quants testing and verification. Tough these tool are very good using them sometimes slows down whole testing phase as one has to write bunch lines of code to get strategy test results. Hence I was trying to find something more “productive” and have found R.
In this article I’d like to show you how efficient and fast could R be in helping us to solve some quants problems. For this article I’ve choose correlation and heatmap. Mainly for sake of simplicity because I know for those already knows Python and its batteries this sample could be very effectively done with Python as well. But I do want to make my first R sample here on this site simple and comprehensible for those who do not know R nor Python.
I guess we can agree that correlation is something each trader should take care of if taking trading seriously. You may ask why someone should try to do something that is also available publicly on many sites. The one reason …
Read article
Translate to English Show original
kevinfu avatar
kevinfu 29 Nov.

Though I don`t understand,but I know this is a great article,thanks for your work.

mcquak avatar
mcquak 29 Nov.

tishina , Mattie , Forex_champion  thank you for you comments

mcquak avatar
mcquak 29 Nov.

kevinfu thank you for your comment. I'm sorry, English is not my mother tongue so I do understand that my article could sound confusing.

adelas60 avatar
adelas60 29 Nov.

it is very nice

mcquak avatar
mcquak 29 Nov.

Thank you adelas60

orto leave comments
In this article, I would like to share very simple concept of quantitative trading and forecasting of financial markets. First of all, let’s describe what quantitative trading is about. Quantitative trading is trading based on mathematical and statistical interpretation of the market. Most of the time is about historical data but that is only piece of this concept. I will show you simple way of market forecasting based on historical data.
Implementation of Quantitative Analysis – Algorithmic Trading
Quantitative analysis has very high relationship with algorithmic trading. As you may expect, all algorithms around a globe are designed based on quantitative analysis of data-sets. There is many ways how to analyze. For this article I choose simplest data sample to show you where the advantage of this method is.
Data Quality
One of the most important things in quantitative trading is ability to choose quality of data samples. Many people think that validity of back testing is higher with bigger data samples. Truth is that samples suppose to be corresponding with time frame you want to analyze. For example if we want to predict market in next 10 seconds, choosing 10 years o…
Read article
Translate to English Show original
mesiar avatar
mesiar 24 Sep.

very interesting article

rokasltu avatar
rokasltu 24 Sep.

Very interesting approach for exchange rate predictions. I think maybe it is feasible to tie this analysis with some indicators?

foreignexchange avatar

congratulations : )

CriticalSection avatar

excellent effort, well done!

PPandM avatar
PPandM 19 Oct.

well done

orto leave comments
I’ve been engaged in algorithmic trading for five years. During this time, I’ve learnt about performance and source codes of over 1000 various Forex robots and indicators. Just alone Strategy Contest contains some hundreds of different Forex robots and their source codes. That is very helpful for beginners in learning the algorithmic trading. I’d like to share my experience with others. So, this article presents the basic principles of creating a profitable Forex robot. Where to start? First, you need to type “Forex robot”. You can find a plenty of different strategies (robots) in Dukascopy Wiki, Strategy Contest, Forex Community. Use the sources to choose the most suitable robot for your personal Forex strategy and customise it. If you do not have your personal Forex strategy – choose whichever robot you like and upgrade it. While going deeper into Java, you will need Java documentation for JForex API. If you cannot learn programming yourself, you can always seek help from a professional programmer. How to evaluate profitability of a strategy? There are many different indicators to evaluate a profitability of a strategy. The main objective of each strategy is profit. In order …
Read article
Translate to English Show original
Paulito avatar
Paulito 25 Feb.

Thanks for the information

Dieselfx avatar
Dieselfx 26 Feb.

ok, im ready for part 2

GreenTrader avatar

good work...

Santificado avatar

Hello, friend, how can I get more detailed information about this your robot?
And if you have used in live operations?

olchik0012 avatar

удачи тебе!).

orto leave comments
High-frequency trading (HFT) is a new sophisticated type of trading that involves supercomputer power and ultrafast algorithms, which solve the price action and the news-feed in a matter of microseconds. It arises firstly in the stock market, where a lot of algorithmic trading desks exploit the order flow inefficiencies and compete for the bid/ask spread in a broad range of actively traded stocks. In 2010 over 70% of the US equity trading volume is considered to be driven by these algorithmic strategies. But what is the situation in the forex market? Is there anything similar or not? We will discover in this paper that in forex this segment of the active trading participants grow very fast and soon will determine the rules in the whole market! The HFT firms in the forex market operate with small trade size, but very large volume of transactions. The typical period of holding the open position is very short, approximately less than five seconds and often under one second. In the forex market the HFT is a bit slower than in the equity market, because the market is decentralized and the liquidity is aggregated from all over the world, so the speed of light is t…
Read article
Translate to English Show original
ELENA_M avatar
ELENA_M 14 Oct.

enough informative, good style :)

gorozcoh avatar
gorozcoh 11 Nov.

Very interesting your article. I share your dream with respect to the HFT and your good opinion about Dukascopy.

hyperscalper avatar

Do you have strategy code to implement a strategy, which you would share?

hyperscalper avatar

I actually looked for Triangular arbitrage opportunities on the Dukascopy ECN. There ain't any, no surprise !!! :) Has to be done between "uncoupled" exchanges.

hyperscalper avatar

In my own work, I've tried to provide "High Frequency Scalping" to ordinary retail traders, which is NOT the same as classic "brute force" HFT, of course :)

orto leave comments