Trading – Dave Tromp

December 3, 2019June 5, 2023

Which Forex Pairs are Generally Trending and Which Ones Tend to Revert to the Mean

In this article, I will systematically investigate the tendency of different Forex pairs to either trend or revert to the mean. I will do so by backtesting a simple trend-following strategy. (Code available on Github. See the end of this article.)

“The trend is your friend.”, is a very well known trading adage. Another thing you read a lot in trading books, blogs, etc. is that the market only trends 20, 30, 40, xx% of the time.

I was wondering how these ideas relate to the Forex markets. Continue reading “Which Forex Pairs are Generally Trending and Which Ones Tend to Revert to the Mean”

June 30, 2019February 12, 2021

Automate your trading without writing code

In this post, I will investigate and show you the ways I know that you can automate your trading without the need to be a professional software developer. In fact, you don’t even need to be able to code. The main reason why I trade end-of-day strategies is that I do not want to be in front of my computer screen trading the whole day. Another way not to be stuck behind your screen for the whole day is to automate your trading strategy. when most people think about automating a trading strategy they think about writing code and setting up a server and hooking up some trading APIs. Continue reading “Automate your trading without writing code”

June 26, 2019September 24, 2023

Should You Only Trade With The Trend as a Beginner

When you start trading for the first time, it is very tempting to take every trade that comes your way. It is much better, however, when you are just learning how to trade to only ever trade with the trend. Continue reading “Should You Only Trade With The Trend as a Beginner”

June 23, 2019February 16, 2023

Where to Place Your Take Profit

Where to place your take profit

Ok, you see a nice trade opportunity. And you know where to place your stop loss. Now, how about the take profit order? Where do you place it?

In this post, I will show you my approach to setting my initial take profit levels.

Continue reading “Where to Place Your Take Profit”

June 21, 2019February 16, 2023

Where to Put Your Stop Loss

Where to put your stop loss

So I talked about “What is R in Trading” and why it is so important to understand. I hope I made clear that R lets you focus on and manage Risks by always setting a stop-loss order to take you out of a position automatically if things turn against you. Now, after writing that I was thinking: Where would I place my stop loss? How do I do it? And can I explain how I usually place my stop-loss orders? Interested in knowing how I do it? I will give it a shot and do my best to explain it to you.

The most basic rule I use for placing a stop-loss order on my trades is this:

I want to be taken out of the trade automatically when the market shows me that my initial idea or reason for entering the trade, is no longer valid. Continue reading “Where to Put Your Stop Loss”