Automated Trading

Automated Trading

Discover winning trading strategies for trading

As you all know, backtestmarket borns from the need of collecting futures timeseries in order to load them into Metatrader and backtest automated trading strategies.

What an automated trading strategy is and how does it work?
An automated trading strategy is just an algorithm, working at certain circumstances. Metatrader's Expert Advisor is the name a trading algorithm has when running in Metatrader. The following image shows a piece of code for an expert advisor in MT4

Metatrader automated trading

This piece of code shows that programming skills are needed, but do not worry! I learnt from scratches within 2 months. What is important when running algorithmic trading strategies is to have at your disposal high quality data to run backtests and validate the strategy. After almost two years of experience and coding, I and Andrea (my colleague) have produced a portfolio of more than 40 working expert advisors running in real market making automated trades. The guidelines we follow when coding an algorithm are the following:
1) Reliability in the long run (in the past). We just take robots working from many years in the past, at least 10, but even more
2) Smoothness of the equity line
3) Small DrawDown As a portfolio and money management strategy, all our expert advisors enter the market with the same amount of money, in order to be edjed in case one loses money.

In fact we just need a profitable automated trading robot  to edge the global position from the other one losing money. We finally advice not to open up positions to be held just less then a couple of hours, because the market needs some time to run and let you raise your profits. This is why we advice to keep the position opened at least 1 day. Start thinking of an automated trading strategy and code down your idea. It could be the best strategy in the world. Just one last advice. Do not think complex strategies. The world thinks easy, if you want to be aligned with a global mindset, think easy and code easilier.