What’s Hot In Algo Trading [Jan 2021]
Here’s what my algo trading strategies said about the week ending 1/2/2021.
I have broken the analysis into major sectors, looking at 40 different futures markets.
For each sector, I look at different length trends:
Short (1-2 weeks)
Medium (1 month)
Long term (2-3 months)
At a glance, you can tell what markets were trending and which were not.
How is this useful?
If you are a discretionary trader, knowing the different length trends will help you stay out of choppy markets. Also, you’ll know which sectors are conducive to strong trend behavior right now.
If you are an algo trader, you can compare how your algos did compared to these benchmarks. If your performance was poor, maybe your algos missed spotting strong trends. Or maybe your algos tried too hard to trade through the chop. If your performance was good, then you know your algos are good at spotting trends (and possibly countertrends).
So, this algo trend analysis can be useful for all traders!
Your Trading Guide: Kevin Davey has been algo trading futures for over 25 years, and is currently a full time trader. He is a 3 time international futures trading contest trophy winner and the author of 4 best selling trading books.
Kevin can be reached via e-mail at firstname.lastname@example.org.