ETR Trading Tools for Excel was designed with 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 calculate volatility and how to measure return to risk. 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 (volatility), the ETR Comfort Ratio which gives you an excellent return-to-risk measurement and my own position sizing algorithms detailed in my book Successful Traders Size Their Positions - Why and How? For those traders interested in getting more diversification in their portfolio I've included a correlation matrix worksheet that takes in price data and gives you correlation coefficient between various pairs, so you can see how a new position may or may not be correlated to your existing positions. 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.