trend-follow.io

Opensource trend-following systematic trading algorithms based on top trend following traders (Richard Dennis, Olivier Seban and Nick Radge).

Algotrading Roadmap

Algorithmic trading, or algotrading, refers to the use of computer programs and algorithms to execute trades in financial markets. These algorithms follow predefined rules to decide on the timing, price, or quantity of trades without the need for human intervention. The primary goal is to execute orders faster and more efficiently than manual trading.

Table of Contents

Intro into algotrading

Trading is the buying and selling of financial instruments in order to make a profit. These instruments range from a variety of assets that are assigned a financial value that can go up or down – and you can trade on the direction they’ll take.

You may have heard about stocks, shares and funds. But there are thousands of financial markets you can trade, and a variety of products you can use to trade them.

Key Features of Algorithmic Trading:

  • Speed and Automation: Algorithms can process large amounts of data and execute trades at high speeds, often in milliseconds or microseconds.
  • Precision: Algorithms follow exact instructions, minimizing the risk of human error in placing trades.
  • Backtesting: Strategies can be tested on historical data to assess their potential effectiveness before being deployed in live markets.
  • Cost Efficiency: By automating trades, traders can potentially reduce transaction costs and slippage (the difference between the expected and actual trade price).
  • Scalability: Algotrading allows traders to manage complex trading strategies and execute multiple orders across different assets simultaneously.

Common Types of Algorithmic Trading Strategies:

  • Market Making: Algorithms place buy and sell orders to profit from the bid-ask spread.

  • Arbitrage: Identifying and exploiting price differences between different markets or assets.

  • Trend Following: Algorithms follow price trends and execute trades based on moving averages, momentum, or other technical indicators.

  • Mean Reversion: Based on the theory that asset prices will revert to their historical average over time, these algorithms look for overbought or oversold conditions.

  • High-Frequency Trading (HFT): A subset of algotrading that involves executing a large number of trades at extremely high speeds, often in milliseconds.

Advantages:

  • Efficiency: Algorithms can scan multiple markets and assets in real-time, making trading more efficient.
  • Emotionless Trading: Removes the emotional component of trading decisions, which can lead to more consistent outcomes.
  • 24/7 Operation: Algorithms can operate continuously, taking advantage of opportunities around the clock.

Disadvantages:

  • Over-Reliance on Technology: System failures, bugs, or network issues can disrupt trading.
  • Market Impact: Large algorithmic trades can move markets if not properly managed.
  • Complexity: Developing and maintaining effective algorithms requires significant technical expertise.

In short, algotrading combines finance with technology to automate trading strategies, aiming for speed, precision, and reduced costs in financial markets.

Markets

Financial markets are platforms or systems where buyers and sellers interact to trade financial assets such as stocks, bonds, commodities, currencies, and derivatives. These markets are crucial to the functioning of the economy as they facilitate the transfer of capital from savers (investors) to entities (businesses, governments) that need funding for productive activities, such as expanding operations or developing new projects.

Stocks

A stock represents a share in the ownership of a company. When you own a stock, you own a small portion (or “share”) of that company, making you a shareholder or stockholder. Stocks are also referred to as equities because they represent ownership (or equity) in a company.

Indexes

Top 10

Exchanges

Cryptocurrency

Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate on decentralized networks, typically based on blockchain technology.

Indexes

Top 10

Exchanges

Forex

Forex, or the foreign exchange market, is a global decentralized market where currencies are traded, enabling participants to buy, sell, exchange, and speculate on currency values.

Commodities

Commodities are basic raw materials or primary agricultural products, such as oil, gold, natural gas, or wheat, that are traded on markets and used in the production of goods and services.

Bonds

Bonds are debt securities issued by governments, corporations, or other entities to raise capital, where the issuer borrows money from investors and agrees to pay periodic interest (coupons) and return the principal amount at a specified maturity date.

Trading instruments

Trading instruments are all the different types of assets and contracts that can be traded. Trading instruments are classified into various categories, some more popular than others.

Market participants

Market participants are the individuals or entities that engage in buying, selling, or exchanging financial instruments within financial markets. These participants include individual investors, institutional investors (such as mutual funds, hedge funds, and pension funds), traders, brokers, market makers, banks, corporations, and regulatory bodies. Each plays a role in ensuring market liquidity, price discovery, and efficient capital allocation.

Market analysis

Market analysis refers to the process of analyzing financial markets.

This process encompasses various types of analysis, often assigned to two basic categories, technical analysis and fundamental analysis.

Price actions

Price action is the movement of a security’s price plotted over time. Price action forms the basis for all technical analyses of a stock, commodity, or other asset charts.

Systematic technical analysis

Systematic technical analysis is a method of evaluating and trading financial assets based on predefined, rule-based strategies that rely on historical price patterns, trends, and technical indicators. It involves the use of algorithms or models to analyze market data and make trading decisions, eliminating emotional or discretionary biases.

Market analytic platform

A market analytic platform is a software tool or system that provides users with comprehensive data, tools, and insights for analyzing financial markets.

Brokers and exchanges

A broker is a financial intermediary who facilitates the buying and selling of financial assets, such as stocks, bonds, commodities, or currencies, on request of clients. Brokers execute trades, provide investment advice, and often offer additional services like market research, portfolio management, and financial planning. They earn revenue through commissions, fees, or a combination of both, depending on the services provided and the type of brokerage model (e.g., full-service broker or discount broker).

CFD brokers

Usefull for smaller accounts

Futures brokers

Usefull for medium and big accounts

Cryptocurrency exchanges

Money management and psychology

Effective money management helps in maintaining financial stability and achieving investment goals, while an understanding of psychology aids in recognizing and overcoming biases and emotional responses that can lead to poor financial decisions. Combining both aspects is crucial for successful financial planning and investing.

Trend follow algotrading strategies

Trend following is when you try to capture extended moves in the financial markets, either up or down, mostly for long-term gains. Once in a while prices tend to keep on going (enduring) and these are the moves trend followers like. The aim is to capture most of such moves, not all, but the majority of them.

About Us


We are small team of freelance software developers and trend follow momentum base algo traders on cryptocurrencies and US stocks market.

We specializes in developing custom algo trading strategies and indicators in many trading platforms as TradingView, cTrader, TradeStation or MultiCharts.

You can hire us for consulting/developing algotrading systems.

Discord: Trend-follow.io
Email: trend-follow@mailinator.com