Stock Trading Strategies Ebook PDF Free Download
|
|
Hello,
fellow traders, please allow me to introduce a tutorial handbook - "LIGHTING
THE PATH TO PROFITABLE TRADING: A Step-by-Step Guide to Building a Trading
Strategy Verification Tool with VBA Macros".
This stock trading
strategies PDF guide aims to provide traders with a practical and
comprehensive approach to developing and testing trading strategies using
Excel and Visual Basic for Applications (VBA). The Ebook covers various
aspects of trading, including technical analysis, back-testing, and
performance evaluation. This handbook is suitable for traders of all levels,
from beginners to experienced professionals, who are looking to improve
their trading skills and gain a better understanding of the data science and
finance programming. This tutorial includes practical examples, step-by-step
instructions, and illustrations to help traders build and test their own
trading strategies using Excel and VBA. By the end of this guide, traders
will have the knowledge and skills necessary to develop and evaluate
profitable trading strategies and make informed decisions in the market.
Besides Introduction, Conclusion, and Author Bio, there are nine main
chapters in the handbook:
CHAPTER 1: GETTING STARTED WITH EXCEL AND
VBA
This chapter provides an introduction to Excel and Visual Basic
for Applications (VBA). Excel is a widely used spreadsheet application that
allows users to store, manipulate, and analyze data, as well as create
charts and graphs. The chapter covers the calculation of the Simple Moving
Average (SMA) and demonstrates how to use Excel's built-in formulas to
calculate the SMA. It also introduces VBA, which is a programming language
integrated with Excel that allows users to automate tasks, create custom
functions, and build complex applications within Excel. VBA is a powerful
tool that requires some programming knowledge to use effectively, but it is
user-friendly and has many resources available online to help users learn.
The chapter concludes by demonstrating a trading strategy that uses VBA to
generate signals for buying and selling.
CHAPTER 2: WHAT IS
BACKTESTING AND WHY IS IT SO IMPORTANT
Backtesting is a method for
evaluating the performance of a trading strategy based on historical market
data. By backtesting a strategy, traders can identify flaws and weaknesses
in the strategy, set realistic expectations for its future performance, and
refine or develop new strategies. To perform a backtest, traders need to
define the rules of their trading strategy, gather historical market data,
simulate trades using the strategy and evaluate the results based on
performance metrics such as profitability, risk, and Sharpe ratio. A
practical example is presented, which involves back-testing a trading
strategy called the "Two Moving Average Lines Cross" using AAPL's historical
data. The example demonstrates how adjusting the parameters of the strategy
can lead to significant differences in the results, and how using a VBA
macro can save time and money. The chapter concludes by emphasizing the
importance of back-testing in avoiding guesswork and mystery in trading and
in improving the chances of success.
CHAPTER 3: DATA ANALYSIS WITH
EXCEL
It covers the process of importing historical data into Excel
for the purpose of building a back-testing spreadsheet. The chapter provides
step-by-step instructions for downloading historical stock data from popular
sources such as Yahoo Finance, MSN.com, and Google Finance, and explains how
to clean and transform the data for analysis. The chapter also highlights
the importance of saving the Excel file often and having a backup, as well
as double-checking the data before using it in your analysis or trading
strategy.
CHAPTER 4: CREATING TRADING STRATEGIES
This chapter
focuses on creating trading strategies using Excel formulas and VBA. It
begins with an introduction to basic trading strategies such as the "Three
White Soldiers" and "Three Black Crows" candlestick patterns. The chapter
then provides steps for writing a VBA macro, including declaring variables
and turning off automatic calculation for speed.
The main procedure
involves initializing and calling subroutines, including the self-verifying
procedure and the digging procedure. The self-verifying procedure checks and
verifies all formulas in the Excel worksheets to ensure accurate results.
The digging procedure uses machine learning techniques to divide historical
data into training and testing sets, evaluate performance, and identify
profitable parameter combinations.
CHAPTER 5: BACKTESTING YOUR
TRADING STRATEGIES
This chapter discusses the importance of
back-testing your trading strategies and how to create a back-testing
spreadsheet to test your strategies on historical data, and explains that
the back-testing VBA Macro will try every combination of the conditions set
in the "Scan" worksheet, and simulate a series of trading actions using
historical data from the beginning, opening and closing long or short
positions based on the signals generated by your trading strategies.
The chapter also provides various methods to run the VBA Macro program. It
explains that the back-testing trading simulation record generated by the
VBA Macro can be used to easily understand the trading strategy's actions.
And, this chapter concludes that while historical performance cannot
guarantee future results, back-testing can theoretically help us make more
informed decisions for the future. The process of back-testing ideas can
help us avoid blind guessing and imagination.
CHAPTER 6: ANALYZING
YOUR RESULTS
This chapter discusses how to analyze the results of
back-testing your trading strategies. It highlights several metrics that can
be used to evaluate the performance of a strategy, including Profit and Loss
(P&L), Win Rate, Turnover Period, Maximum Drawdown, Sharpe Ratio, Average
Profit and Loss per Trade, and Average Holding Time. By analyzing these
metrics, traders can identify strengths and weaknesses in their approach and
make necessary adjustments to improve the strategy's performance. The
chapter provides an example of a trading strategy called "Golden Cross and
Death Cross" to explain how to analyze the back-testing results. The chapter
also emphasizes that profit and risk are inseparable, and individual
investment philosophy plays a crucial role in deciding the acceptable level
of risk and return.
CHAPTER 7: IMPROVING YOUR TRADING STRATEGIES
This brief covers Chapter 7 of a trading guide, which focuses on
improving trading strategies. It highlights some basic techniques, including
analyzing results, identifying weaknesses, experimenting with new ideas,
keeping a trading journal, staying up-to-date with the latest market data,
and seeking feedback. The chapter introduces the concept of "Hybrid Power,"
which involves blending two or more rules or indicators together to filter
out signal noise and identify real trading opportunities. It explains how to
mix Hammer and Shooting Star candlestick patterns and RSI indicator to
create a Hybrid trading strategy. The brief explains the significance of
each of these indicators and their role in the strategy, and provides a
simplified example of the VBA code for signal generation.
CHAPTER 8:
FORWARD TESTING
This brief discusses the concept of Forward Testing,
which is a method used to evaluate stock trading strategies in real-time by
applying them to current or future data. The process allows traders to
observe how a strategy performs under actual market conditions and make
necessary adjustments to improve profitability. Paper trading or demo
trading is a simulated trading process that allows traders to practice
trading strategies without risking real money. Forward-testing is crucial in
the development of a stock trading strategy to verify its robustness
repeatedly, especially when new data arises. Transaction costs such as
brokerage fees and slippage should be considered to obtain a more accurate
representation of the strategy's performance.
CHAPTER 9: RISK AND
SAFETY
This chapter highlights the importance of exercising caution
and using back-testing as one of many tools in the investment
decision-making process. While historical performance can provide valuable
insights, it is not a guarantee of future results, and investors should
consider a range of factors when making investment decisions.
The
chapter also draws parallels between investing and war, emphasizing the need
for intellect and courage to make informed decisions and advance towards
success. Additionally, it highlights the importance of software and internet
safety, providing tips for ensuring the safety of Excel macros. And, the
chapter stresses the importance of prioritizing safety in investing, both in
terms of decision-making and software security, to mitigate risk and
increase the chances of achieving financial goals.
Overall, in this handbook, we have shown you how
to build a simple tool to verify your trading strategies' effectiveness,
even if you don't have strong programming skills. By using Excel and VBA,
you can create a back-testing and forward-testing spreadsheet that will allow you to test your
strategies on historical data and up-to-date data. We hope that this handbook has provided you
with the knowledge and skills you need to start building your back-testing
spreadsheet and testing your trading strategies. Various financial
instruments, such as stocks, Forex (foreign exchange), options, futures,
cryptocurrencies, and bonds, among others, can be tested using back-testing
and forward-testing
techniques to evaluate the effectiveness of different ideas and methods. You can download it from
this link, and it is totally free!
And click Free Trial to download strategies testing tools, all for a 30-day Free Trial.
Click on Subscription to order more strategies testing tools to help your stock trading. |
|
Free Tutorial Share
|
|
|
|