Learn to build automated trading tools that maximize your profits and maximize your free time.

Beat the Market with a Diversified Trend Following Model and the Donchian Channel

5 Minutes to Running a Backtest that Beats the S&P 500!

Sept. 19, 2022 • Raposa

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 w...

New to Algorithmic Trading? Start Here!

Learn how to build your own systematic trading strategy without code!

Aug. 17, 2022, 7:13 p.m. • Raposa

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. Histor...

Three Strategies for Trading the Donchian Channel in Python

Learn to trade the Donchian Channel like legendary trend followers

Aug. 15, 2022 • Raposa

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 pred...

An Easy Way to Diversify Your Trend Following Strategy

Add gold, cocoa, gas, and a plethora of other markets to your system for cheap

July 19, 2022 • Raposa

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 peop...

How to Follow the Crowd: A Complete Momentum Trading Strategy

When stocks start moving, jump on board!

July 7, 2022 • Raposa

Ad-hoc decision-making and trading—they go together like acne and prom night. If you've read our post outlining the damage behavioral biases can inflict on a portfolio or our post describ...

How to Test and Trade a Strategy with the PSAR Indicator

Add the PSAR to your trend following model today

June 29, 2022 • Raposa

Markets will always exhibit trends. It's part of human nature. Trends develop as people get excited about a new stock, or as technology or the regulatory environment changes. It's hard...

The Fastest way to Build your Own Trend Following System

Get your trading algo up and running in just a few minutes!

June 21, 2022 • Raposa

Would-be trend followers are frequently stopped by the inability to backtest strategies. Yes, you can use Excel (sort of) but it's exceedingly slow, cumbersome, and will likely require some ...

Build a Bot to Beat the Bear Market

Backtest your strategy during tough times

June 17, 2022 • Raposa

Bear Markets in the News The S&P 500 officially entered bear market territory earlier this week as it is down 20% from its highs in January. Additionally, guys like Michael Burry (the real...

The Critical Mistakes Most Traders Make

Or How I Learned to Stop Worrying and Love the Algos

June 7, 2022 • Raposa

Join our community of systematic traders on Slack! More Retail Investors than Ever are Trading Over the past few years, we've seen a massive ...

Should you trade this portfolio? Interpreting Backtest Results

Guidelines and important metrics for portfolio backtesting

June 6, 2022 • Raposa

Congrats! You just ran your first backtest and made a bajillion dollars for your (simulated) portfolio! Should you go trade it? Try again for a bajillion-and-one? How do you know you have a good...

Find Your Best Market to Trade With the Hurst Exponent

Detect whether a market is trending, mean reverting, or just random with this indicator

April 11, 2022 • Raposa

After five consecutive years of drought, Northern Californians welcomed the heavy rainfall in the winter of 2016-2017. By February, however, the rain had led many to worry about the integrity of ...

Optimize Your Trading Strategy With Python And The Kelly Criterion

Find the optimal amount of leverage and avoid these simple mistakes!

April 4, 2022 • Raposa

Retail traders almost always have small trading accounts. To get the returns they're after, traders frequently take on leverage - often times imprudent amounts in highly levered FOREX accou...

Do Fundamentals Really Drive Stock Prices?

Research in complex systems may hold the key

March 28, 2022, 8:07 a.m. • Raposa

The market is up as consumer sentiment comes in higher than expected! The market is down over war worries! New low in unemployment boosts market outlook as it closes higher! ...

How to find your own Safe Haven investing strategy

Simulating the S&P 500 and Shopping for Portfolio Protection in Python

March 21, 2022 • Raposa

On Sunday September 2, 1666 a small fire started on the premises of the King's baker in London. By Thursday, the resulting inferno--later dubbed the Great Fire--had reduced much of the medie...

How to gamble with demons (and make money doing it)

A deep dive into safe haven investing and managing your risk

March 7, 2022 • Raposa

A demon comes to you one night giving you a simple dice game to play. You're offered the chance to wager your wealth and receive a 50% increase if you roll a 6, 5% bump if you roll 2-5, or l...

How to think about cost-effective risk reduction to protect your portfolio

The way you look at risk is costing you money

Feb. 28, 2022 • Raposa

Can you increase your returns while reducing your risk? Modern finance says this is a ridiculous concept! There's a trade-off, more return requires more risk by definition. Mark Spitznagel...

3 Ways To Trade The Parabolic SAR In Python

Using the PSAR to build momentum and trend following algos

Feb. 21, 2022 • Raposa

Markets can be volatile, ripping higher over a few weeks before accumulating a series of down days. Timing these momentum trades is never going to be perfect, but indicators like the Parabolic S...

How to use Python and the Kelly Criterion to Optimize your Stock Portfolio

Use Python for advanced, dynamic portfolio optimization

Feb. 14, 2022 • Raposa

Position Sizing is often overlooked by the retail trader. Most wind up over betting and taking on too much risk and blowing up their account. On the other hand, investing in very small amounts ...

Adjusted vs Unadjusted Closing Prices and your Trading Algorithm

How does your choice of closing price impact your backtest?

Feb. 7, 2022 • Raposa

My heart began racing when I logged into my brokerage account - my largest position was down 40% from the day before. I started to freak out. It was a normal day in the market - no big crashe...

The Best Investing Strategies to Protect Yourself from Inflation

Algorithmic trading can serve as a key inflation hedge to preserve your wealth

Jan. 31, 2022 • Raposa

Inflation is on everyone’s mind after the Consumer Price Index (CPI) hit its highest level in 40 years . Price inflation means that the dollars in your pocket are buying fe...

The Complete Guide to Calculating the Parabolic SAR in Python

Step-by-step examples and detailed explanations

Jan. 24, 2022 • Raposa

Markets are never flat. They bounce around higher and lower every day, frequently punctuated by momentum moves where they continue higher and higher or lower and lower for a few days in a row be...

Four Reasons Why Retail Traders Lose Money in the Markets

It's your money, don't do anything stupid with it

Jan. 17, 2022 • Raposa

“Retail traders don’t make money in the markets!” If you have ever been interested in trading, you probably have heard this sentiment before. And, to a large extent, it’s true . There have be...

Better to be Rich than to be Right

Have the freedom to go where the markets take you

Jan. 10, 2022 • Raposa

In 2006, the housing bubble was still on the upswing. Interest rates were at all time lows and banks offered NINJA (no income no job applications) to borrowers to get them into a house, no questi...

Trading Algos Aren't as Scary as You Think

What is Algorithmic Trading?

Jan. 3, 2022 • Raposa

Algorithmic trading. The image likely conjures groups of bespectacled nerds (we are a certain type) staring at screens of code and convoluted charts as their systems make trades at lightning spe...

Your Professors are Still Wrong: The Market isn’t Random

Putting the Random Walk Hypothesis to the Test

Sept. 27, 2021 • Raposa

A mainstay of academic research into the market is the Random Walk Hypothesis (RWH). This is the idea that market moves are random and follow a normal distribution that can be easily described ...