From Tick Data to Candlestick Charts
Candlestick charts are a widely used chart type in stock markets and financial trading, designed to display information such as the opening price, highest price, lowest price, and closing price over a specific time period. This article introduces how to convert real-time tick data into candlestick data of various timeframes and provides essential formulas and…
Dual Moving Average Strategy
The Dual Moving Average (Dual MA) strategy is a simple yet widely used technical analysis tool designed to identify trend changes in the market and generate trading signals. This strategy involves two moving averages—a short-term (fast) and a long-term (slow)—and uses the crossover points between them to determine the timing for buying or selling. Strategy…
R-Breaker Strategy
The R-Breaker strategy is a well-known trading strategy developed by American trader and programming expert Richard Saidenberg. It was made public in the early 1990s. This strategy is primarily used in the futures markets, where it has performed particularly well with S&P 500 index futures, but it can also be applied to other financial markets….
Forex Strategies in Python
The foreign exchange (forex) market, known for its high liquidity and 24-hour trading cycle, attracts a large number of traders. Quantitative trading strategies are also very popular in the forex market. Below are three classic forex trading strategies that can be implemented quantitatively. 1. Momentum Trading Strategy The momentum strategy is based on the assumption…
Pairs Trading Strategy
The pairs trading strategy is a high-frequency trading approach that seeks to profit from the price spread changes between two correlated assets by simultaneously buying one and short-selling the other. The core idea behind this strategy is mean reversion—when the price spread between two related assets deviates from its historical average, there is a tendency…
A Guide to Backtesting
Backtesting, short for retrospective testing, is the process of evaluating how a trading strategy would have performed in the past. It’s a critical step to determine whether your trading system is viable. Backtesting can be done manually or through automated systems. Regardless of the method, the purpose is to assess whether a strategy is worth…
Ultra-Short-Term Trading Strategies
Ultra-short-term trading (also known as intraday trading, from the English term Day Trading) refers to buying and selling stocks within the same trading day in order to profit from short-term price fluctuations. Today, let’s explore some classic ultra-short-term trading strategies. Overview of Trend Trading Strategies Trend trading strategies involve trading based on the overall direction…
10 Must-Read Trading Books for Success
In today’s financial markets—brimming with both challenges and opportunities—traders face complex decisions and fierce competition. To stand out and succeed in this dynamic environment, it takes more than just technical skills and market knowledge. True success also requires deep insight, discipline, and psychological resilience. Trading books serve as essential resources on this journey. Authored by…
Top Books on Algo-Trading
In today’s highly competitive financial markets, high-frequency trading (HFT) and algorithmic trading have become essential tools for many investors and traders seeking profit. Whether you’re a beginner or a seasoned professional, mastering these complex trading techniques is crucial. However, to truly understand and apply HFT and algorithmic trading strategies, in-depth reading of related literature is…
Practical Guide to MACD
The MACD (Moving Average Convergence Divergence) is a widely used tool in technical analysis, primarily employed to gauge the trend and momentum of stock or other asset prices. First introduced by Gerald Appel in the 1970s, MACD has become a key indicator for investors and traders due to its simplicity and effectiveness. It uses EMAs…
