A simple way to think about your system — Almost all trading strategies available to the retail investor can be divided into one of two camps: trend following or mean reversion. Trend following seeks to buy something when a trend has started (or just before it takes off) and ride it as long as possible. Mean reversion strategies are…

What Trend Following Has Done and Why It Will Continue to Perform — Trend following is old. The Turtles started their experiment in the early 1980’s, but they were far from the first to take advantage of serial correlation in markets. Legendary trader Bill Dunn had been at it for at least a decade at that point. The basic idea of trend following…

How to trade based on the strength of the trend — Classic trend following indicators rely on moving averages, standard deviations, and other statistical measures to identify trends and get in on a trade early. A standard breakout or cross-over doesn’t tell you how strong the trend is. Should we treat all moving average cross-overs the same way? Or is there…

The Trend Following Trend Looks Bright in 2023 — 2022 was a long decline for major market indices — sorry passive investors. The S&P 500 closed the year with a 19% loss and the Nasdaq was in deep bear market territory with a 33% loss on the year. …

7 Questions to Consider Before Opening Your Account — One of the questions we frequently get is, “how much money do I need to start trading?” I could give a glib answer and say you can start with $50 (or less) which is completely true. …

5 Minutes to Running a Backtest that Beats the S&P 500! — In a previous post, we showed three ways you can trade the Donchian channel indicator. The methods were all valuable and show how you could use it, but the strategies were incomplete and so I wouldn’t put my money into something so deficient in key areas such as risk management. …

Learn how to build your own systematic trading strategy without code! — Raposa: A No-Code Algorithmic Trading Solution Raposa is a financial technology startup, designed to make systematic (aka algorithmic) trading accessible for the everyday retail investor. Historically, successful systematic trading has required learning how to code to backtest and automate your trades. Not anymore! While many enjoy coding (we certainly do), not everyone has the time and…

Learn to trade the Donchian Channel like legendary trend followers — In the 1970’s, Richard Donchian began the trend following trend by introducing a simple breakout trading system that would make him millions over the following decades. This system was predicated on an indicator that came to bear his name the Donchian Channel. We’re going to show you how to calculate…

Add gold, cocoa, gas, and a plethora of other markets to your system for cheap — In 1983 two experienced Chicago traders decided to settle a bet: is trading an innate skill or something that could be taught? To settle this bet, they took out an ad and attracted ordinary people they dubbed the “turtles” and put them through a boot camp to teach them a…