directionalbias

Now that the algorithmic trading rage has become fully entrenched in the mainstream of order management workflows, true practitioners of the alpha-generating sciences will move onto the esoteric facets of the black art of short-term trading techniques.

As practitioners and purveyors of everything technical in price movement analysis, we believe that algorithmic trading is nothing but an extension to technically-centric trading methodologies that have been around for the past 30 years or so.

We’ve always contended that a wining algo is nothing more than a profitable system designed to beat the averages under shorter time-frames. Conventional wisdom would indicate that trade execution algorithms will ultimately benefit from the utilization of technical analysis techniques. Untold hours of research will go into testing and evaluating established indicators that have been around for years, others might undertake the daunting task of finding something innovative and new! We’ve embarked on such an exercise, finding something new in a field that has yielded very little in years.

DirectionalBias is a unique study that is nothing like others that came before! Years of research and observation went into the creation of an indicator that is making its mark by earning stripes in the demanding world of algorithmic execution.

The acid test for any technical study is that it should work for any “underlying market” under any “timeframe,” among other things. This blog will chronicle in great detail the performance of the DirectionalBias (DBIAS) indicator. At some point this study will be offered into the public domain, for now it will remain as a virtual black-box, partly to give it time to mature but mostly to give us time to monetize it.