Writing a Trend Strategy
Now that we have gained confidence with basic indicators and strategy scripts, let’s move on to some real approaches that are used in a professional environment. In this chapter, we are going to learn what the market rationale behind a trend strategy is, how to deal with a trend algorithmically, and how to write trend strategies in EasyLanguage.
The end goal of this chapter is for you to understand the process of developing trading ideas and transforming them into algorithmic trading tools. In this chapter, we are going to deal mainly with equities, but the same concepts will apply to other markets, such as commodities and Foreign Exchange (Forex).
We are going to delve into the following topics:
- Developing trading ideas
- Market rationale behind a trend strategy
- Identifying a trend algorithmically
- Handling noise
