Introduction to Grid Trading

I am quite excited to tell you all about Grid Trading. It is something I discovered in my research a couple of months ago and it really grasped my attention. So, what is it? Essentially in its most basic form, Grid Trading is a reversion strategy where trades are entered as the price reaches particular […]

Welcome to 2014 – where do we go from here?

Hello World! Welcome to 2014! I hope you all enjoyed your break, I certainly did. I took the break as an opportunity to clear my mind and refocus on the direction I want to take this FX research. Here is the rough plan for the first half of the year: Wrap up and document my […]

Range Breakout: Conclusions

So I’ve finished up my research on the breakout strategy described in the previous post. While I think it has some merit, I couldn’t find a configuration that produces a sufficiently high expectancy for me to run it long time. I did find acceptable configurations for AUDUSD, AUDJPY, GBPAUD, and GBPJPY. If you email me, […]

Breakout: A different kind of trend strategy

The previous trend categorization work is being put on hold. I’ve spent a little bit too long on this and there is so much to look into in FX, I don’t want to get bogged down on a particular idea. Overall I think the trend categorization idea is great, because it will allow a strategy […]

General Strategy Improvements

So as I was reviewing the trades placed last week, my TREND_REV strategy (still in development) placed a trade near market close on Friday. OMAR_TREND_REV:2013/11/15 14:25:15 Enter BUY 16000@93.82300 Bid: 93.79800 Ask: 93.82300 TakeProfit: 95.64800(1.85000) Stop: 92.87200(0.92600)      11/16/2013 06:25:15   93.796 Let’s see… Bid: 93.79800 Ask: 93.82300 … Ask minus Bid, that’s 2.5 pips… okay not […]

Strategy configuration goes off

Just a quick warning. Today I was backtesting my existing live strategies and a couple of them were producing shocking results. There’s no way I would run this strategy live with these results, I thought to myself. Something was suspicious. Now, Trading Station has a habit of crashing occasionally. This happened to me once before […]

When 337 pips isn’t enough

The last few days I’ve been watching an uptrend in GBPJPY. My interest was sparked when my Shock and Retrace strategy, on the 1 minute timeframe was triggered. If you’ll recall, FXCM asked me to run the strategy at 1m timeframes to gather some data, which isn’t what the strategy was designed for but I […]

Eureka! The secret to identifying a winning strategy

I always wanted to know “How do I know if my strategy is a winner?” … I keep seeing in my FX research something that really bugs me, and it is this magical risk/reward ratio of 2. There’s so much information out there that says that you should trade with a risk/reward ratio of at […]

MACD Divergence

While comparing the TrendZ indicator against MACD, I noticed a bunch of good signals from divergence patterns in MACD. In the chart below, the first A-E crosses are divergence. F-J isn’t but still worked. I wanted to see if this really works so I coded a strategy to trade when it detects divergence, or even […]