Trading Strategies Archives - AlgoJi

Trend Following Strategies

Trend following strategies are those which try to exploit the persistent directional movement in prices. They differ from the momentum strategies in entry criteria such that entry is nor based on price over-reaction patterns. Common Indicators used for trend following...

Basics in Strategy Backtesting

Backtesting is the process of testing a strategy on historical data set to estimate its profitability in live trading.  This article explains the intricacies in backtesting regardless of which software you are using for backtesting. Step1: Collating the Historical...

Volatility Calculations and Perceptions

Understanding Volatility Volatility indicates the variation in market prices. The volatility calculations (and perception) depends upon the trading instrument or market. We first look at the reasons why understanding volatility has prime importance. Price volatility...