Example Trading System

Discussion in 'Strategy Building' started by sidinuk, Jan 17, 2005.

  1. dbs119

    dbs119

    Yes, gary's book is "live the dream by profitably daytrading stock futures"..
    Hs used 50 min breakout. As for SidinUK, he backtested his strategy for 2 years on YM ES NQ and MR and the system show gains in all markets, but the most gains were in the mini russel which appears to be the best for trading purposes and after it comes the mini dow..
    I do not know how to change his system to trade DAX, because the session there is really long.. Basically SidinUk uses 1/3 of the six and a half hours trading session in the stock index futures to compute his range, ( 135 minutes). SO you can use a breakout from the 3 hours range in the DAX.. I was wondering if anyone here could backtest the system as far back into the past as possible.. I think that if anyone has that desire, they can backtest it ot SP as far as 1982 :)).. Or Dow as far as 1998..Or ES or NQ as far as 1997-98...
     
    #151     Mar 3, 2005
  2. That doesn't equate to his method at all! If you simply read what he originally wrote, you'll see that although it turned out on exhaustive investigation that 135 minutes, on that particular sample, happened to be the most profitable, all time-periods between 15 minutes and 180 minutes were profitable anyway, and in many cases the differences between them were actually inconsequential.
     
    #152     Mar 3, 2005
  3. mogul

    mogul


    lol, ok let me do some work backtesting this so you can kick back and trade

    I've backtested back to 2001, and it's profitably year after year, now if that's with a 1.01 profit factor or 1.99........
     
    #153     Mar 3, 2005
  4. mogul

    mogul

    I was able to get it nicely profitable on the DAX but I lost the time parameters I was using...I do remember it cut off mid-afternoon, around 2pm local time...
     
    #154     Mar 3, 2005
  5. dbs119

    dbs119

    So you basically used a 5 hour breakout? Which is half of the daily session.. I think the session there is way TOO long.. Open at 9:00 CET and close at 20:00 CET...11 hours a day..You have influence from the european open, and influence from major us reports @ 7:30 ET ( which is 14:30 CET) and then you close in the middle of the US session..
    I would be really interested to see if anyone tested a 2 hours breakout in the EURUSD but using the 8:20-15:00 ET time frame...
    The past 20 days on the charts looked mildly profitable...
     
    #155     Mar 3, 2005
  6. dbs119

    dbs119

    Jana, yes i read that on his website. But i thought that 1/3 of the daily time is a good opening range breakout strategy for the EURUSD ( at least for the past 20 days of data that i observed)..
     
    #156     Mar 3, 2005
  7. I see ... ah well, ok. Not disputing your 20-day findings. But I thought you were talking about the Dax? Dare I mention anyway that for the EUR/USD breakout strategy, a 30-minute range is enough for Mark B. Fisher, author of "The Logical Trader"? :)
     
    #157     Mar 3, 2005
  8. Maybe you could post the stats and the parameters you used.
     
    #158     Mar 3, 2005
  9. dbs119

    dbs119

    jana,

    I was talking for both DAX and EURUSD..:)) So i think i confused everyone here :))
     
    #159     Mar 4, 2005
  10. ewile

    ewile

    Thanks for the update. The YM got hit today with a false breakout at about 10 minutes after 1.

    The ER2 made have made a little bit back.
     
    #160     Mar 8, 2005