5 Algo Trading Entries

5 Algo Trading Entries
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Today I wanted to talk about 5 unique strategy entry ideas that could help you add to your automated trading bot portfolio.

 

Sometimes I struggle finding new strategy ideas for my automated trading systems and need to look elsewhere for ideas, so I know how hard it is sometimes. Not to worry, today I will be giving you 5 ideas that you can use for your own trading systems.

 


1.     Inside Bars

An inside bar is when a new high or low price has not been broken, usually if volatility is lower then you will find more inside bars. This can be a great time to enter before a breakout when volatility increases.

 

Here is the one of the systems I trade with the 2-year note futures (symbol ZT), it enters after 1 inside bar is found on a daily time frame.

 

2.     Consecutive Bars

Some trends can be spotted with consecutive green or red bars, using consecutive bars is a great way to follow the trend and eliminate choppy trades.

 

Below we use 4 consecutive red bars before entering short.

 

You can also use consecutive new highs or lower lows instead, try testing them!

3.     Seasonality

Using the current season or month can be a great entry on assets that are affected by it especially with commodities like agricultures and energy. For example, let’s look at wheat futures (XW), The chart below aggregates 40 years of seasonal swings in the CBOT wheat futures. Some opportunities we can spot is going long wheat around June and shorting in December. Try to find other assets that follow or have different season trends for maximum diversification.