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Tradestation & MultiCharts Money Management Algorithm Examples

Day Trading the DAX

Posted by David Bean on

Tick Count Trend is a strategy that we have had for a while. It trades a lot and its weakness is a low average trade profit. We can boost the average trade profit by increasing the stop loss and profit target. We can further boost the average trade profit with our Money Management Algorithms. If we wait for a 3000 Euro drawdown and then exit on a 2000 Euro runup, the results improve as we miss some of the drawdown and get in on the cycle of runup to boost the average trade profit. Also, the long only side has a...

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Finding Profitable Trades in a Losing Strategy in Tradestation

Posted by David Bean on

Finding Profitable Trades in a Losing Strategy in Tradestation

Here is the workspace for this video. If you have the MM Algorithms, then you will have all the ELD on your computer and you can download this workspace and open it up. The money management algorithms give you the opportunity to "pick off" winning pieces in the equity curve of a trading system. Sometimes it is easier to find these winning pieces in a very bad equity curve than it is to eliminate bad pieces in a good equity curve. This is especially true if the bad equity curve is high frequency while the good equity curve is low...

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Consecutive Losers Algorithm to Day Trade the E-mini S&P

Posted by David Bean on

Consecutive Losers Algorithm to Day Trade the E-mini S&P

We always look for a better way to trade. Since we know that most systems go through a losing streak, is it better to wait to start during a losing streak? If so, how many losers should we wait for and when should we then stop and start again? The Money Management Algorithms allow you to test and automate this exact approach. The average trade profit for Tick Pulse is one of those strategy that can be improved when using Rule 13, from the Money Management Algorithms. Rule 13 is the Consecutive Losers Algorithm. It starts trading after 3 consecutive...

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Improving DAX Cobra CT V with the Money Management Algorithms

Posted by David Bean on

Improving DAX Cobra CT V with the Money Management Algorithms

Cobra CT V DAX is an "old" strategy. We released it several years back, we take a look at this strategy, the Money Management Algorithms related to this strategy and a new version of Cobra CT V DAX. Cobra CT V is a very basic strategy that enters trade by going long on dips. The "dip window" has been later in the day. When we first released this strategy, there were many first hour dip buying opportunities. The market has become more of a gap continue and then reverse later in the day rather than earlier in the day. The...

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Equity Curve Algorithms Before and After Equity Curves

Posted by David Bean on

Equity Curve Algorithms Before and After Equity Curves

Yesterday we talked about technical analysis of the equity curve. The approach was more "discretionary". Today we discuss a more systematic approach. A trader sent me his closed code strategy for a few markets last week to test on my Money Management Algorithms. The strategy was an impressive swing trade strategy with nice equity curves. I was able to improve his original strategy for one of the three markets. If you already have a pretty good equity curve, it is sometimes a challenge to improve upon it. I then asked the question, how does this work on "other" markets. Using the same...

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