Algorithmic Strategy Development
A strategy is a rule for entering and exiting a position, stated precisely enough that a program can act on it. Turning a trading idea into that kind of rule is harder than it looks, and this section is where we work through the process. We cover how technical indicators and signals get combined into entry and exit logic, how to keep a strategy simple enough to audit, and why a rule that works in a spreadsheet can still fail once it meets live market data. We also look at position sizing and signal filtering, since a strategy is not just when to trade but how much to risk on each decision.
Related: Backtesting and Validation · Trading Risk Management
From Trading Idea to Testable Rule
A framework for writing entry and exit logic a computer can evaluate.
Read more →Combining Technical Indicators Without Overloading a Strategy
Why more signals usually make a system worse, not better.
Read more →Position Sizing Rules for Automated Strategies
How much to risk per trade and why that number should change over time.
Read more →Signal Filtering: Cutting False Entries
Basic techniques for reducing noise in a rule-based system.
Read more →All new posts across every category.
Reader discussion as it happens.
Atom format for feed readers.