How to Build a Trading Strategy

Matt Radtke at has a nice 6 part series on how to build a trading strategy, from conceptualization to implementation.  This is a great place to start for those just beginning to learn about the world of algorithmic trading.  Make sure to try out the techniques detailed by writing down your trading rules or testing them on data in Excel.  

  1. Introduction
  2. Central Thesis
  3. Defining a Universe
  4. Backtesting
  5. Additional filters
  6. Exit methods and stop losses

You can download historical stock data from Yahoo Finance to get started.

Recommended Reading

I recently came across a great blog run by fellow Collective2 system developer Sanz Prophet with a treasure trove of information for those just starting out with algorithmic trading.  Check out the following posts:

A great resource.  Visit his blog for more.

Collective2: A Review

As a regular user of Collective2, I thought it would be fitting to begin my series of reviews here.  It’s difficult to start a review series in a void, so I will be comparing aspects of Collective2 (or C2, as it is often abbreviated) to some of the other sites listed in The Autotrading Universe; but don’t worry–I intend to review, eventually, as many of those sites as possible to provide further context.  N.B. this review will be updated as Collective2 continues to evolve.

Continue reading Collective2: A Review