Exploring Charting Techniques: Creating A Trading Strategy Part 3 by Sylvain Vervoort
Sit Back And Relax
Creating our own indicators and turning them into a trading strategy is something all technical analysts strive to do. Unfortunately, a lack of programming skills can often discourage us from accomplishing this. But there are ways to get around it. Here’s one way to create and backtest an indicator without writing any code.
If you are a devout reader of this magazine, then I can confidently say that you likely have your own ideas for creating custom indicators and turning standard and custom indicators into a trading strategy. Ideally, these ideas would first be backtested on historical data and possibly run in full autotrading mode. Wouldn’t that be magnificent?
Of course, having an idea is one thing, but turning it into an executable piece of program is a different ballgame. In this article, I will create a combined indicator and a backtesting strategy, and I will do this without using a programming language.
THE BASIC TRADING IDEA
First, please note that the purpose of this article is to provide an example of one way to create indicators and trading strategies without writing programming code. Thus, the indicators and strategies shown here are for educational purpose only.