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A good trading algorithm is built on a foundation of rigorous research, strategic design, and continuous optimization. Here are the key basics: Statistical Foundation: Develop strategies based on robust statistical analysis and historical data. Clear Strategy Type: Decide between trend-following, mean-reversion, or momentum-based approaches. Comprehensive Backtesting: Test the strategy using historical data to ensure...

Short answer: Yes. But here’s the real story. Algo trading can beat manual traders, but only when the strategy is developed following a solid process: ideating with statistics, building strategies around trend following, mean reversion, or momentum, and ensuring comprehensive backtesting, validation, and regular fine-tuning. Without these, even algo trading flops. A well-built algo...

Absolutely! The days when algo trading was just for prop desks and big institutions are gone. Thanks to advances in tech and wider access to tools, retail traders can now join in through various third-party platforms. Many platforms even offer strategy builders where you can create, backtest, paper trade, and deploy strategies. But here’s...

Best Algo Trading Strategy? It's Not One-Size-Fits-All! When it comes to algo trading, there isn’t a single “best” strategy that fits everyone. Each has its own pros and cons, and it really depends on your comfort with risk. Imagine these two scenarios: Scenario 1: Strategy with High Accuracy (80%) and moderate Risk-Reward Accuracy: 80%...

Hey traders! Let’s dive into a big question today – is it better to trade based on the opening types of Market Profile or wait for the Initial Balance (IB) to form? Both approaches have their perks, and we'll chat about the pros, cons, and the best scenarios to apply each method.