Multiple Timeframe Indicators
Multiple timeframe indicators and chart analysis give you an impression on what other traders see on their charts. This helps a lot with all market timing strategies.
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Author: Philipp
Making Use of Arrays
After mastering your first steps in programming and understanding functions and variables it’s time to move on and make use of the more advanced data structures in Tradesignal: Arrays Variables To see the possibilities of the array data structure first let’s recap variables. Variables are place holders to store the outcome of a calculation. In the example above the value
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Power Procurement Strategy Design
A procurement strategy is a strategy which buys a given number of contracts spread over a given time. It will come with a benchmark and the strategy’s goal will be to buy for a lower price than the benchmark does. This article will show you the general layout of a procurement strategy for German Power. A Procurement Strategy Benchmark For
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The Kelly Criterion – Maximise Your Capital Growth
How much money should you risk with your next trade? This article will show some applications of his Kellys research in trading and give you the position sizing formula to achieve the maximum possible capital growth.
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Lognormal Volatility Band
A lognormal Bollinger Band shows a more more realistic estimation of “up” and “down” than the original Bollinger bands would do. This article gives the updated indicator code for lognormal based volatility bands.
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Profit from date based Patterns
Not all dates are created equal. This article is all about date based patterns. Date based and weekday based. It shows statistical evidence that not all days are equal and presents a simple algorithmic strategy to profit from this date and day based patterns.
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Implied Volatility: Data, Indicators and Usage
Implied volatility is the market’s expectation of future moves. This article will show you a simple way to access Refinitiv Eikon data in Tradesignal, visualise it and scan for exceptional volatility in stocks and ETFs. Replacing historical volatility by implied volatility will give you new insights to risk management and options trading.
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A Graphic Approach to visualize Drawdown
Trading is about time and money. Combining these two figures into one drawdown indicator gives you a visualization of these two key factors. Trading strategies experience drawdowns from time to time. This is nothing you can avoid. You only can make sure to adjust the trading strategy if the current drawdown exceeds the historic one. So, one key number will
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Sharpe Ratio Indicator: Scan for Performance
The Sharpe Ratio is a measure for risk-adjusted returns, developed by Nobel Laureate William F. Sharpe in 1966. It describes the volatility-adjusted excess returns of an asset over a risk-free return. This article highlights the thoughts behind the Sharpe Ratio formula and some practical applications of it when selecting different asset classes.
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Outperformance: Find the right Stocks to beat the Index
Whenever you try to beat an index you will have to be invested in an asset which outperforms your benchmark. This article is about how to calculate outperformance and how to make use of it. In its most simple definition outperformance just means that one asset is performing better than an other asset. But this simple definition is not enough for investors.
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Volatility Projection
Today the market moves up, tomorrow it might move down, but is this of any importance or just random noise? This volatility projection indicator will tell you if there is something exceptional happening. Standard Deviation and Volatility Projection The standard deviation of market movements is a widely used measure to define exceptional events on the market. An example: Bollinger Bands
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Crash Correlation Indicator
The crash correlation indicator will tell you if a specific instrument is a good source of diversification of your portfolio. As you know, correlation can be a tricky thing. Under normal conditions a stock might only be loosely correlated to its index, but when there is a strong market movement, correlation will change to nearly 100%. This indicator visualizes this
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Anticipate Trend Changes early, using Bullish and Bearish Divergence
Divergences between an indicator and the price can be powerful signals for a trend change. This post will show you how to program an indicator to automatically detect and visualise a bullish and bearish divergence by using so called arrays. What is a Bullish or Bearish Divergence? A perfect example of a bullish divergence is shown on the chart below:
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How to avoid Failures in Multiple Time Frame Trading
Programming a multiple time frame trading strategy is a great thing to do, but there are certain traps. And if you don`t know them, you might accidentally look into the future and get an over optimistic backtest result. This article gives you the needed information to avoid these traps and build valid multiple time frame trading strategies. The Differences between
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Smoothing a Candlestick Chart
A little bit of smoothing can remove the random movements of the market without introducing too much lag. This 10 line Tradesignal code shows you how to get a smoothed candlestick chart and remove a lot of stress in trading. The screenshot above shows you a daily candlestick chart of EURUSD and a smoothed version below. This is done with
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Bonds or Stocks? Trading Markets based on Momentum
Imagine you would like to design a trading strategy that either invests in the stock market or invests in bonds. This blog will show you how it is done using a momentum indicator. I use a flexible formula language with one piece of code for trading more than one instrument. To have an easy to program example, I created a
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Support-Resistance – visualized with RSI and ADX
When the market is overbought and reverses back down , the previous high usually turns out to become a resistance level. At least it should be a level which will not be overshot for some time. Support-resistance levels might be interesting for an options trader, e.g. if he wants to place a bet on a neutral to bearish market behavior.
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Technical Analysis Indicators for Counting
Sometimes you need some Technical Analysis indicators for counting in your code. Maybe, you are interested in how many days ago something happened. An example could be a question like “how many days have we been above the moving average” or “how many days since we had a new high”. This post will show you an easy way to answer
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Detecting Spikes for Mean Reversion Trading
Using the Average of a Season indicator from our last post, this time we want to show you how to use this indicator for mean reversion trading. On the chart below you see some wonderful trading opportunities are marked. Each time you should have been able to make some money trading a reversal towards the average. The trick behind this
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Moving Average Chart over a Season
Averages are the most common tools in technical analysis. They are usually calculated over a sliding window of data, which gave them the name moving average. This post is about a different type of a moving average chart; the average of a season. Usually averages are calculated in a rolling manner, e.g. over the last 200 days. But you could
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