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The trend is your friend!

“The trend is your friend”. This famous phrase is in almost all trading books. But how important is it to trade in the direction of the trend? This is the question I asked myself. Before answering this question, we will discuss some generalities. Whereof is usually composed a trading strategy: An entry that gives us

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Random entry + ATR Trailing Stop

Can a strategy based on a random input  with a suitable output and money management be profitable? Dr Van Tharp in his book Super Trader, said he did the test in 10 markets over a period of 10 years, and says the results were positive in a consistent manner. “It didn’t make a lot of money and

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Moving Average Crossover

If there is a popular technique in trading, it is the moving averages (MA) crossover. We saw in a previous article that the problem of the strategy based on the MA was whipsaw. We then presented a technique that corrects the issue in the article on the Keltner bands. The technique of using crossing of two

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Reinventing the MACD

The MACD is the famous indicator invented by Gerald Appel in the 70s.  It measures the amplitude of divergence between two moving averages. This indicator is very popular, systematically found in all trading platforms. It can be used in different type of strategy: like momentum indicator for trend following, oscillator for range-trading, etc. … In this article

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The Donchian Channel

The Donchian Channel was developed by Richard Donchian, who used a 50 weeks period in the original strategy.  The idea is to buy when the price breaks the upper band of the channel (maximum 50 weeks) and sell when it breaks the lower band of the channel (minimum 50 weeks). However, this is Richard Dennis who popularized

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