ETR Trading Tools for Excel was designed for the new trader trying to figure out how to get started with a simple trend-following strategy. In many of the emails I receive, I get questions on how to automate aspects of trading, how to size positions, how to combine trend following indicators into a single indicator, how to hedge, and how to calculate volatility. This ETR Trading Tools for Excel gives the trader inexperienced in automating parts of a trading strategy a starting point. It is not meant to be a replacement for the extremely sophisticated research and trading platforms like TradingBlox or its competitors, but can serve as a great starting point to ramp up the learning curve on trading and automating parts of your personal strategy.
I've included the exact formulas which you may copy, an explanation of three popular trend following strategies, calculations of Average True Range, the ETR Comfort Ratio, my hedging strategy and my own position sizing algorithms for your use. One of my recent papers on the research page of this site discusses the ETR Comfort Index in truly measuring return and risk historical in strategy. This workbook includes a calculation of the Comfort Ratio, so you can see how to calculate it. In addition, due to many questions about how I hedge, I've added in my exact hedging strategy, so you can see the calculations. In order for traders to consider correlations when adding an instrument to their portfolio, I have an example correlation matrix in the workbook as well. In addition, I've shown you how you create your own personal strategy in a help video explaining to the new trader what I've included and how best to use it to create a working strategy.