Trading with your intuition and gut feelings is a recipe for disaster. What we need is a systematic approach to trading that revolves around risk and reward. For this we need to learn a bit of predictive modelling. As long as you trade with a seat of the pants method, you going nowhere near your…
When designing algorithmic trading systems, knowing the direction of the market can help a lot in improving the accuracy of the signals. In this post I will try to develop an algorithmic trading system that attempts to predict the market direction using candlestick patterns and machine learning. Candlestick patterns get widely used by professional traders…
In this post I am going to discuss in detail how we can code the stop loss, take profit and trailing stop loss in MQL5. In a trade the two most important things are the stop loss and the take profit. Get both of them right and you have a winning trade. Stop loss should…
EURNZD is a minor currency pair that can give you a good trade each month. EURNZD trends when EUR falls and NZD rises or when EUR rises and NZD falls. Did you read the post EURUSD opening with a huge gap? Now if you have been reading my Trading Ninja blog, you must have learned…
On Monday, EURUSD opened with a huge weekend gap. Last week the tension was in the air. French elections were scheduled on Sunday. Whenever there is some important political event in Europe, expect EURUSD to become nervous. This is precisely what was expected. We were expecting a huge Sunday gap. Did you read this month…
In this post we are going to discuss the S&P 500 Exponential GARCH Asset Volatility model. The volatility model that we will develop in this post for S&P 500 can also be used for other indices like Dow Jones, Nasdaq, FTSE 100, DAX , CAC 40, Hang Seng etc as well as stocks like Apple,…
If you are an options trader, you should read this post. In this post we give you a short few lines python code that you can use to calculate the option price using the Black Scholes Options Pricing Formula. If you are not familiar with Black Scholes Options Pricing Formula, you should watch these videos.…
In this post we are going to discuss a recent USDJPY buy trade that is 700 pips in profit. If you have been following our previous posts than you must by now know that we believe in risk management more than profit taking. When you have a winner, let it run. Did you read the…
In the last post we talked about 8 Machine Learning Algorithms that can help us in trading. You should read that post. In that post we pointed out 8 machine learning algorithms that can help us in predicting market direction. These 8 machine learning algorithms were Neural Networks, Support Vector Machines, Fuzzy Logic, Wavelets, Kalman…
Artificial Intelligence is quietly revolutionizing our lives. With the recent successes in auto driven cars, the future of Artificial Intelligence looks very bright. Artificial intelligence is a favorite theme with many science fiction movies in which robots are shown as more smart than humans. You must have watched a few Hollywood movies in which artificial…
