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What are various forex trading exit strategies exist

What are various forex trading exit strategies exist

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Who is interested in sharing their exit position strategy? What technical analysis indicators do you use? I hear MACD and RSI is most popular combo. I know there is a possibility of using a standard deviation in normal distribution stats as well some form of correlation between convergence/divergence of 2 asset relationship. Let me know if you can with your parameters well. Big thanks

Here are the various answers:

In my experience, using indicators only delays your entry and exits. Personally, I use only Bollinger Bands and that’s all you need but I’ll keep the rest of my strategy a secret if I may!! (still finalising it actually).
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Can use a ATR stop loss. 1.5 -2 ATR. Some use SAR too.
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Can also consider to use swing lows to exit
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Hey Bryan, in my experience , RSI and MACDs (I only use those 2) are only supplementary. I use the best indicator of all: price. Price action is the best . The rest are price’s derivatives. In a nutshell, I use price patterns, trend-lines, horizontal and diagonals. And if it applies I use Fibonacci levels (0.618 and 0.382, +1) . I hope it helps
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As Collin says ATR are good for stop loss or profit taking if you r a day trader . Trading in general depends on your trader’s profile
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I use stochastics if I believe it is a “range market” and if price is forming a range
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This is the Crude chart: https://stocktwits.com/IsaacFigueroa/message/92924489

 

$USOIL Crude is playing with us again (overfollowed) $DWT $UWT $ERX. TA can save you headaches $USO
STOCKTWITS.COM
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And this is a simple strategy for swing trading https://stocktwits.com/IsaacFigueroa/message/92939592

IsaacFigueroa shared an idea on StockTwits
@bertrandmth Bullish: 51.5 -52 . Bearish: 43.5 – 44. I have no position, I will wait for tomorrow @10:30 am
STOCKTWITS.COM
For stop loss standard deviation or ATR. Profit target depends on the strategy objective.
RSI + price and rumours/facts seems to work OK with Crypto…. For an amateur.
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I would be very sceptical about RSI used as an exit strategy because the RSI is a momentum indicator, and why to exit when the market gains a momentum? On the other hand exiting when RSI losses the momentum could be a way to go, BUT RSI is logarithmically scaled indicator so any small retracement in price will look as a huge slowing down of a RSI momentum -> and why to exit just because of a small retracement in price? big nono.

I did exactly what your second paragraph says in my Bachelors work. StdDev and two currency pairs correlation. The problem is that the returns are not normally distributed and so during the summer holidays, a 2 sigma worked best, but during U.S. election the 3 sigma performed best at backtests. If you can predict the volatility, you can then adjust those parameters, but I can’t predict that :/ I tried to use the Hurst Coefficient as it seemed most reasonable to adjust the x-sigma exit strategy and the results were a way better.

Anyway, always the best exit strategy was the ISSL which stands for Industry Standard Stop Loss, for more information visit http://www.forexmospherians.com, it is all there 🙂 Hope it helps man.
http://www.forexmospherians.com/

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Various market event arbitrage example source code in Matlab including HFT Bitcoin quant uses

Various market event arbitrage example source code in Matlab including HFT Bitcoin quant uses

There are lots of examples but here are some highlights of the potential:

http://www.mathworks.com/help/econ/identify-cointegration.html <– usual pair trading stuff

http://www.capitalexchangeblog.com/arbitrage-between-an-etf-and-its-component-stocks/ <– some source code examples with high frequency data

http://www.stanford.edu/class/msande444/2009/2009Projects/2009-2/MSE444.pdf <– talk about matching engine and order book dynamics no different than Barry Johnson DMA book http://www.amazon.ca/Algorithmic-Trading-DMA-Introduction-Strategies/dp/0956399207 but not source code

http://www.ljmu.ac.uk/Images_Everyone/Jozef_1st(1).pdf <– could be some effective trading ideas with HFT in mind but never seen before

file:///C:/Users/i7-acer/Downloads/Caldeira_Moura_2013_Selecao-de-uma-carteira-de-par_10051%20(3).pdf <– no source code

http://epchan.blogspot.ca/2006/10/arbitrage-trade-between-energy-stocks.html <– no source examples

https://cs.uwaterloo.ca/~paforsyt/agon.pdf <– decent source code examples

http://www.reddit.com/r/BitcoinMarkets/comments/1rlb93/i_run_a_bitcoin_trading_bot_on_5_exchanges_ama/ <– people talk Bitcoin trading but no code

http://faculty.washington.edu/ezivot/econ584/notes/cointegration.pdf <–focuses on cointegration as we know but there are some examples

http://numericalmethod.com/papers/course1/lecture1.pdf<–talks about programming language disavantages but no code

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various FREE quant, HFT, and strategy development related events online and in person in Toronto, Canada

Hi there

We are getting busy with various FREE quant, HFT, and strategy development related  events online and in person in Toronto, Canada:

Tonite! Meetup on Presentation of FIX8 from David L. Dight Feb 21 at 7PM EST

Meetup on Presentation of FIX8 from David L. Dight Feb 21 at 7PM EST

Social Meetup for Quants, Trader, R, Matlab, and tech lovers in North York/Toronto cut off today for Mon Feb 25

Social Meetup for Quants, Trader, R, Matlab, and tech lovers in North York/Toronto cut off today for Mon Feb 25

Live demo of visual trading model from Matlab Simulink to Open Source Trading

In person is limited!

Live ONLINE demo complete workflow of Matlab Simulink to Tradelink with Microsoft .NET

More to come for March and April so stay tuned

THanks Bryan

 

 

 

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FREE Download Open Source Code Various Demos of Microsoft .NET C# using MATLAB NE Builder Toolbox

FREE Download Open Source Code Various Demos of Microsoft .NET C# using MATLAB NE Builder Toolbox

This is a simple demo of this powerful Matlab toolbox with some M script algo examples

Download the ZIP package from

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Any suggestions for a trading platform in the UK that will let me back test various trading strategies for quant analytics?

Any suggestions for a trading platform in the UK that will let me back test various trading strategies, ideally over 20-30 years covering commodities and equities, thanks

 

==

eSignal has these capabilities as do Interactive Brokers. The real problem is the expense of the data feed for these types of studies. If you already have a data provider you can use Meta Trader, Ninja Trader, etc., to do your studies and I think many of the services are free. That’s about it (to my knowledge) unless you’re ready to lease a Bloomberg or use a prime broker like RediPlus platform from GS.

 

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Best stock picks for Nov 11, 2011 from various global exchanges

Best stock picks for Nov 11, 2011 from various global exchanges

 
DANV.CO
KIF-B.CO
WIRTEK.CO
SAMBHAAV.NS
KOPDRUGS.NS
JCTEL.NS
THD.TO
HOU.TO
XIU.TO
MMXM3.SA
RSID3.SA
DTEX3.SA
AYR.F
42P.F
NRL.F

 

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I am been working on various mean reverting or “inside tunnel” trading model for recent low vol market

I am been working on various mean reverting or “inside tunnel” trading model for recent low vol market, however, none of them work nicely, any fresh idea to brain storm for discuss?

Take a look at thishttp://en.wikipedia.org/wiki/Ornstein%E2%80%93Uhlenbeck_process .

Hope it helps.

Bests.
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-i guess esp in mean reverting in low vol it wont work and voltility is diff to gauge
mean reverting desnt work in low volatility as we take fixed period means and as day passes by we add new day price and take out the 1st price —–so it wont work in case of low volatility
—–
Take a look at Perry Kaufman’s new book “Alpha Trading”.
Is anyone else aware of any other text ( or academic paper ) about mean reverting strategies ?

before proceeding with the discussion/advice could you please give us a hint about the instruments and timeframes/resolution/scale you’re attempting to trade?
well, since they did not work I was thinking you could tell us what you were doing, what mean reverting strategies you were using.
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This may be obvious, but for a mean reverting trading strategy to work, the market must first tend to mean revert, meaning in the data you should see negative serial correlation of returns, or non parametrically, divergence of price from some MA must be predictive of a higher probability of a move towards the mean than a similar sized move away from it. Is the issue with the data or the implementation?
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In my amateur opinion, I believe several factors contribute to the success or failure of any trading strategy, especially in a low volume environment. Factors such as AUM, execution platforms and strategy correlation between firms (herd mentality) contribute to trading performance more than most traders would like to admit. You may have a successful strategy, but problems or constraints in another area may be adversely affecting your performance. I suggest you evaluate your entire trading environment as part of your brainstorming session.

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Quant analytics:I am been working on various mean reverting or “inside tunnel” trading model for recent low vol market

I am been working on various mean reverting or “inside tunnel” trading model for recent low vol market, however, none of them work nicely, any fresh idea to brain storm for discuss?


Take a look at thishttp://en.wikipedia.org/wiki/Ornstein%E2%80%93Uhlenbeck_process .

Hope it helps.

i guess esp in mean reverting in low vol it wont work and voltility is diff to gauge
mean reverting desnt work in low volatility as we take fixed period means and as day passes by we add new day price and take out the 1st price —–so it wont work in case of low volatility

—-

Take a look at Perry Kaufman’s new book “Alpha Trading”.
Is anyone else aware of any other text ( or academic paper ) about mean reverting strategies ?

Before proceeding with the discussion/advice could you please give us a hint about the instruments and timeframes/resolution/scale you’re attempting to trade?

1

 

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!