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

How To Think About Your Trading System's Complexity

Customize your trading system to fit you and your style

May 17, 2021 • Raposa

The markets are full of ways to make money. There’s no “right” way to go about it. A multitude of styles, instruments, and approaches from long term, defensive, Ben Graham-style investors to ...

How to add Exponential Moving Averages to Your Trading System

Step-by-step examples in Python for your algos

May 13, 2021 • Raposa

Moving average indicators are used in a variety of trading strategies to spot long-term trends in the price data. One potential drawback of simple moving average strategies is that they weight ...

How to use RSI in Your Trading System

Step-by-step calculations and examples in of the RSI in Python

May 10, 2021 • Raposa

The relative strength indicator (RSI) is a popular and handy indicator we can use to measure when a stock is ready to pullback or, has moved down too quickly and should shoot back up. It’s in the...

Your Free Data is Costing You Money

Is your backtest telling lies?

Feb. 25, 2021 • Raposa

Garbage in. Garbage out. This old adage holds for all areas of decision sciences, including backtesting your investment strategies. Years of working with financial data — and directly in the dat...

How to Reduce Lag in a Moving Average

Using the Hull Moving Average to improve your trading system

Sept. 13, 2021 • Raposa

Moving average indicators are commonly used to give traders a general idea about the direction of the trend by smoothing the price series. One of the big drawbacks to most common moving averages ...

4 Powerful MACD Strategies for your Trading System

Backtesting a versatile and popular indicator in Python

June 21, 2021 • Raposa

The Moving Average Convergence-Divergence (MACD) is a popular and versatile indicator that appears in a number of trading systems. In it’s most basic form, we have the difference between two e...

Test and Trade RSI Divergence in Python

Learn to trade multiple algorithmic divergence strategies with easy-to-follow code examples

July 26, 2021 • Raposa

Divergences occur when price and your indicator move in opposite directions. For example, you’re trading with the RSI and it last had a peak at 80, now it peaks at 70. The underlying security you...

Building a Complete Bot Trading System for Beginners in Python

Go from no algo to a live bot trading for you!

Nov. 13, 2021 • Raposa

There are a multitude of resources on the web which give you pieces of trading strategies. Most focus on one aspect or another (typically entry signals) while ignoring other, crucial components (...

A Complete Starter System for New Traders: Trading Multiple Instruments

Improving your trading system with diversification to your trading algorithm in Python

Nov. 29, 2021 • Raposa

Systematically trading a single instrument can be a bit dull. There are times when your chosen stock isn’t trending or doing much. So your system just sits there and waits…a...

What is the difference between Quantitative and Technical Trading?

Become a scientific trader

July 28, 2021 • Raposa

Below is a candlestick chart of Ford’s daily price. Take a look. What patterns do you see? Depending on your skills in technical analysis, you might be able to spot some ver...

The Only Two Trading Strategies You Need to Know

A simple way to think about your trading systems

June 3, 2021 • Raposa

Almost all trading strategies available to the retail investor can be divided into one of two camps: trend following or mean reversion. Trend following seeks to buy something when a trend has st...

What Everybody Ought to Know About Backtesting

All backtests are not created equally

March 17, 2021 • Raposa

Running a quick, vectorized backtest is a great way to get your head around a trading strategy or test a new idea. But you should never trade off of such a model if you want to make money. Inst...

Trading a Complete Starter System Live with Alpaca

How to run an algorithmic trend following system in Python

Dec. 13, 2021 • Raposa

We’ve spent the past few posts building up the Starter System laid out in Rob Carver’s book, Leveraged Trading . We’ve gone from a simple moving average cross-over model , to a volatilit...

A Complete Starter System: Trading with a Forecast

Adding forecasts to your algorithmic trading strategy in Python

Nov. 15, 2021 • Raposa

Let's talk about insider trading. In an imaginary world where you know with certainty that the price of a stock will change on a given date - you can place a huge investment for enormous g...

A Complete System for New Traders: Trading without a Stop Loss

Continuous trend following trading for better rewards and lower risk

Nov. 9, 2021 • Raposa

Risk control is absolutely crucial for traders. The first rule of trading is to stay in the game. The humble stop loss is the bread and butter for traders trying to control their risk. But what ...

A Complete System for New Traders: Adding Entry Signals

How to use additional signals to boost your returns

Nov. 1, 2021 • Raposa

If you're new to trading, it may be challenging to know how to get started. There are so many new terms, maths, and concepts, it can seem overwhelming! Now you have to take all that stuff a...

A Complete Starter System for New Traders

Learn to trade algorithmically with step-by-step instructions in Python

Oct. 25, 2021 • Raposa

Your biggest investment just took another move higher. It has gotten to the point that you start thinking about taking some profit off the table: it's looking more and more enticing by the d...

How to Build your First Mean Reversion Trading Strategy in Python

June 28, 2021 • Christian Hubbs

The beautiful thing about markets is they always move. They may not show  strong momentum or trends  at any given time, but that doesn’t mean you can’t make money off of a strategy. You can ride ...

Testing Turtle Trading: The System that Made Newbie Traders Millions

Aug. 18, 2021 • Raposa

Trade like a Turtle In 1982, a group of inexperienced traders were recruited to be a part of an experiment that would make many of them multi-millionaires. Richard Dennis bet his partner Will...

Higher Highs, Lower Lows, and Calculating Price Trends in Python

Automatically find peaks and troughs in price action

July 12, 2021 • Raposa

What happens if the price direction disagrees with your model? For example, the price may be increasing, but your RSI - a derivative of price - is decreasing. Should you trade this if you get a s...

4 Simple Strategies to Trade Bollinger Bands

Learn to trade this indicator with backtests in Python

July 21, 2021 • Raposa

Bollinger Bands have been a popular indicator by traders since they were invented in the early 1980’s. They’re calculated in four, easy steps and are intended to provide traders an idea of the ...

How to Build Your First Momentum Trading Strategy in Python

Learn an algorithmic momentum trading strategy

June 28, 2021 • Raposa

Have you ever noticed the tendency for stocks that have risen to continue rising in the future? Likewise, a few down days seem to beget more losses. This is known as  momentum  and strategies tha...

How to Backtest your First Trading Strategy in Python

A simple algorithmic trading strategy to beat the S&P 500

Feb. 2, 2021 • Raposa

Vectorized Simple Moving Average Strategy to beat the S&P 500 Anyone who follows the financial media has likely seen headlines like: The S&P 500 just formed a ‘Golden Cross,’ a bullish...

Why I Left Value Investing Behind

Trading with algorithms has its freedom

Sept. 24, 2021 • Raposa

You have probably heard the old adage “buy low and sell high.” That’s great, but the question is what is “low” and what is “high?” To know the difference between high and low, you need an eva...