Chart patterns have long been a favourite of the technical analysis community. Triangles, flags, pennants, cups, heads and shoulders…. Name a shape, someone somewhere is using it to predict market behaviour. But, we need to find out if there is a grain of truth or reliability in these patterns. Can attempts to objectively measure these …
When tinkering with trading ideas, have you ever wondered whether a certain variable might be correlated with the success of the trade? For instance, maybe you wonder if your strategy tends to do better when volatility is high? In this case, you can get very binary feedback by, say, running backtests with and without a …
In part 1 of this series, we talked about how a market-savvy systematic trader would approach a period of drawdown in a trading strategy. Specifically, they’d: do the best job possible of designing and building their trading strategy to be robust to a range of future market conditions chill out and let the strategy do …
Before you commit your precious time to read this post on Shannon Entropy, I need to warn you that this is one of those posts that market nerds like myself will get a kick out of, but which probably won’t add much of practical value to your trading. The purpose of this post is to …
One of the ongoing research projects inside the Robot Wealth community involves an FX strategy with some multi-week hold periods. Such a strategy can be significantly impacted by the swap, or the cost of financing the position. These costs change over time, and we decided that for the sake of more accurate simulations, we would …
At Robot Wealth we get more questions than even the most sleep-deprived trader can handle. So whilst we develop the algo equivalent of Siri and brag about how we managed to get 6 hours downtime last night, we thought we’d start a new format of blog posts — answering your most burning questions. Lately our …
This is the third in a multi-part series in which we explore and compare various deep learning tools and techniques for market forecasting using Keras and TensorFlow. In Part 1, we introduced Keras and discussed some of the major obstacles to using deep learning techniques in trading systems, including a warning about attempting to extract meaningful signals …
This article is adapted from one of the units of Advanced Algorithmic Trading. If you like what you see, check out the entire curriculum here. Find out what Robot Wealth is all about here. If you’re interested in using artificial neural networks (ANNs) for algorithmic trading, but don’t know where to start, then this article …
In keeping with our recent theme of providing useful tidbits of algo trading practicalities, here’s an elegant solution that resolves Yahoo’s unceremonious exit from the free financial data space. Regular readers would know that I use various tools in my algo trading stack, but the one I keep coming back to, particularly when I’m ready …
Earlier this year, I attended the Google Next conference in San Francisco and gained some first-hand perspective into what’s possible with Google’s cloud infrastructure. Since then, I’ve been leaning on Google Cloud Platform (GCP) to run my trading algorithms (and much more) and it has quickly become an important tool in my workflow! In this …
