Notes on backtesting, indicators, and building systematic trading strategies.
Learn how MACD is calculated, what its signals mean, and how to test it without overfitting. Includes practical settings, rules, and pitfalls.
Education August 14, 2026Trend-following tends to work best in persistent directional markets, while mean-reversion often fits range-bound conditions. The key is matching the strategy to the regime.
Education August 7, 2026RSI is useful for spotting momentum extremes, but simple buy-low/sell-high rules often break in strong trends. Learn how RSI works and how to test it properly.
Education July 31, 2026Monte Carlo simulation stress-tests a strategy by reshuffling or resampling returns to estimate the range of possible outcomes, not just the average backtest.
Education July 24, 2026Slippage and commissions can turn a profitable backtest into a weak live strategy. Learn how to model both realistically and avoid optimistic results.
Education July 17, 2026Diversification only works when strategies behave differently. If five systems all lean on the same market regime, you may just be multiplying the same risk.
Education July 10, 2026Overfitting happens when a strategy is tuned to past noise instead of repeatable market behavior. Learn the warning signs and practical ways to reduce it.
Education July 3, 2026A macro regime filter helps trend systems trade only when market conditions are favorable, reducing whipsaws and improving risk-adjusted returns.
Education June 26, 2026Fibonacci retracements can help frame pullbacks, but their edge is often weak unless combined with trend, volatility, and risk rules.
Education June 19, 2026Learn how ATR measures market volatility and how traders use it to place stops and targets that adapt to changing conditions.
Education June 12, 2026Position sizing controls how much you risk per trade. A mediocre signal with disciplined sizing can survive; a great signal with oversized bets can fail fast.
Education June 5, 2026Max drawdown shows the worst peak-to-trough loss in a strategy. It helps you judge whether returns are worth the pain and capital risk.
Education May 29, 2026Learn how Bollinger Bands work, when they favor mean reversion or breakouts, and how to test both approaches without overfitting.
Product May 22, 2026Learn a practical validation workflow from historical backtests to paper trading so you can spot weak strategies before putting real money at risk.
Education May 15, 2026A strong backtest is useful, but it can still fail in live trading due to overfitting, costs, regime shifts, and execution gaps.
Education May 8, 2026Learn how Sharpe ratio measures risk-adjusted returns, how to calculate it, and what “good” looks like in real trading strategies.
Product May 1, 2026Algovex lets traders design strategies with drag-and-drop nodes, then test them on historical data before risking real capital.
Product April 24, 2026In-sample backtests can look great and still fail live. Walk-forward analysis helps test whether a strategy adapts to changing market conditions.
Product April 17, 2026Learn how to turn a trading idea into a testable strategy using visual tools, backtesting, and validation methods—no programming required.
Product April 10, 2026See how Algovex can take a simple strategy idea in plain English and help you shape it into a testable, backable trading system.