Amibroker is an excellent tool for back testing and can also be set up for automated trading with Interactive Brokers. The basic infrastructure is to connect Amibroker to the Interactive Brokers Trader Workstation software using the Amibroker IBController plugin as a buffer.
Because financial matters are rarely covered during high school, many people don’t understand the stock market or how to invest their money properly. This means that they are more vulnerable to investment scams. With the growth of the internet, and the current frothy state of global markets, these investment scams are unfortunately all too common. […]
Since starting this blog I’ve been able to document a few of the mistakes that I’ve made over the years trading the financial markets. There was the time that I lost money buying Alibaba shares even though I pretty much picked the bottom.
One of the hardest things to do in investing is to buy the market as it makes yet another new high. Intuitively it makes little sense. The only way to profit in the stock market is to sell something for more than you paid for it so why would you buy something that has been […]
Hedge fund manager Ray Dalio says that every time he learns something new or makes a mistake in the markets he writes it down so that he can go over it later and learn from it. I’ve been doing something similar and it does help keep a record of things. Here’s a list of the […]
Whatever your opinions are about the concept of back-testing, there are few better ways to build a trading system than through the back-testing of historical data. Back-testing allows us to answer critical questions like ‘how many positions should I hold in a portfolio?’, ‘how much risk should I take?’ or ‘how effective was this strategy in the past?’
Unfortunately trading systems often get discarded early on after a couple of poor back-test results. Sometimes it is better to improve an existing system than to start afresh with something new. In this article I look at 21 ways you might be able to improve on your existing trading system:
My goal is to bring new trading strategies to the table every month. Last month, I brought you details about building a trading robot with Excel and Interactive Brokers and this month I’m back with another excellent strategy from Peter Titus called The Big Volatility Short.
The benefits of creating an automated trading system are huge. With a profitable trading robot you can spend more time doing what you enjoy and less time watching screens. You can trade quicker, smarter and without emotion.
One of the keys to successful system trading is to be able to combine different strategies together. When you are able to combine less correlated strategies, it is possible to smooth drawdown, boost win rate and therefore improve your overall risk-adjusted returns. In Amibroker it is possible to combine equity curves together so you can see […]