Designing and Building a Profitable Automated Trading System

Discussion in 'Automated Trading' started by ScottD, Dec 9, 2008.

  1. another ok day.
     
    #181     Feb 3, 2009
  2. ScottD

    ScottD

    Attached is a chart annotated by Cashcow work-in-progress Release 1.2.

    Jack and I have incorporated the following new functionality / refinements into this release:

    - Open entry logic.
    - Whipsaw suppression logic. The current logic is somewhat more suppressive in certain conditions than before.
    - Automated lookups for non-stationary data sets.

    In Feb 2 forward testing, Cashcow Release 1.2 Logic generated the following results:

    Gross Profit: +10.75 points
    Profit/Range ratio: +0.6
    Trades: 4
    Wins: 3

    We continue to use a deductive logic approach as opposed to over-fitting the curve from historical data.

    Next steps include definition and integration of a set of suppression and signal logic modules to boost performance.
     
    #182     Feb 4, 2009
  3. ScottD

    ScottD

    In Feb 3 forward testing, Cashcow Release 1.2 Logic generated the following results:

    Gross Loss: -2.5 points
    Profit/Range ratio: -0.1
    Trades: 5
    Wins: 3
     
    #183     Feb 4, 2009
  4. ScottD

    ScottD

    Today's forward testing results so far...

    Attached chart shows the first entry on bar 3 and subsequent reversal on bar 4.

    After you click the link below to load the chart, click once more on the chart itself to restore full resolution. The image is sized to fit a 24-inch or larger LCD.
     
    #184     Feb 4, 2009
  5. ScottD

    ScottD

    The ATS Reversed to Long on Bar 48.
     
    #185     Feb 4, 2009
  6. Only 2 trades today.
     
    #186     Feb 4, 2009
  7. ScottD

    ScottD

    In Feb 4 forward testing, Cashcow Release 1.2 Logic generated the following results:

    Gross Loss: -12 points
    Profit/Range ratio: -0.5
    Trades: 3
    Wins: 0
     
    #187     Feb 4, 2009
  8. This sort of result seems to me to be beyond the pale. Question: What is the relative weighting of the MACD indicator in a decision to trade? By its very nature the MACD used in this method is NOT 'washed out' after a 'period of time' = 14xtime period. In contrast both stochs are clean after the appropriate 'period of time'. The EMA is screwing things up and you need to address how to fix this.

    lj
     
    #188     Feb 4, 2009
  9. In an attempt to be helpful, I am offering the following suggestions to upgrade the cash cow ATS.

    1). incorporate a rate of change ("ROC") indicator for signal suppression.
    2). use absolute values of ROC for signal suppression
    3). use the first derivative of ROC for signal suppression
    4). consider retooling your current model to reflect a sequence selection orientation as opposed to a signal processing orientation
     
    #189     Feb 5, 2009
  10. Neoxx

    Neoxx

    ETLURKER, your version of the Cashcow has demonstrated what I, in another thread, have thus far been unable to... consistent and competent beginner level SCT, trading the long diagonals of the channels and wider traverses.

    I commend your efforts, and congratulate you on your current iteration.

    ScottD, I know you've also invested a great deal of time on developing your current iteration.

    Jack had suggested I use the results of the ATS as an evolving benchmark against which to compare my own performance. Despite my generous headstart, you have both overtaken me.

    Keep up the good work! :)
     
    #190     Feb 5, 2009