Determining the “Trendiness” of a Market Using Excel

Articles, Excel Models

If you are a trend trader your best profits will come by trading markets and securities that have a tendency to move in strong price trends. A key goal then is determining the “expected trend strength” or “trendiness” of a security.  You must...

Trading the Trend for Big Profits With Excel

Articles, Excel Models

The foundation of a great trading system is the ability to identify and capture large price moves. A system that consistently generates large winning trades can easily offset smaller losing trades and produce significant profits.  This is the main feature of trend...

Your First Trading Model in Excel

Articles, Excel Models

I get this question a lot:  “If you were going to design your first trading model in Excel, what system would you start with?” The answer has a lot to do with what you trade and what you consider “trading”. Are you a stock trader or a foreign...

How to Calculate Spread Trading Contract Legs: Case 3 Contracts Denominated in Different Currencies

Articles, Data, Spread Model FAQs, Spread Trading Model

< Back to Case 2 How to Equalize Spread Legs When the Securities are Denominated in Different Currencies This is the base case where both securities are denominated in different currencies and a currency transformation is required in addition to a Contract...

How to Calculate Spread Trading Contract Legs: Case 2 Contracts with Different Quote Units

Articles, Data, Spread Model FAQs, Spread Trading Model

< Back to Case 1 How to Equalize Spread Legs When the Securities Have Different Quote Units This is the base case where both securities are in the same currency and no currency transformation is required, but the two Quote Units are different.  You cannot equalize...

How to Calculate Spread Trading Contract Legs

Articles, Data, Spread Model FAQs, Spread Trading Model

When spread trading futures, stocks, ETFs or other securities, it is important to equalize the dollar value of each side of the spread. The short position in Security #1 should be offset as closely as possible by a long position in Security #2.  This series of case...