Example Trading System

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

  1. My modified version of this strategy had a decent week with these trades:

    trading IWM:

    7/18 no trade
    7/19 Long 66.40 Exit 66.55
    7/20 Long 67.14 Exit 67.45
    7/21 no trade
    7/22 Long 67.04 Exit 67.39

    These are actual entry/exit points.

    DS
     
    #271     Jul 22, 2005
  2. The_End

    The_End

    Sidinuk - the data that I am looking at for ER2 on 7/22, shows a breach of the days low at 12:57 which would have generated a SS.

    Your site displays a long trade being taken at 675. Could you double check that trade? TIA
     
    #272     Jul 23, 2005

  3. Your version generated two trades for the week in ER2.

    07/19/05 Long 668.30 at 13:00 EST, Exit EOD 671.00 Profit $ 270
    07/20/05 Long 674.80 at 13.30 EST, Exit EOD 678.90 Profit $ 410

    Total for the week = $ 680 per contract BEFORE comm. & slippage.

    Not too shabby at all! :D :D


    P.S. I wonder why the ER2 did not give the signal on Friday 07/22 ?????
     
    #273     Jul 23, 2005
  4. Hey Forrest,

    Do I get a % ;)


    Too bad about Friday as it was my best trade for the week on this system. I don't understand why you did not get a signal on Friday on ER2 while I did on IWM. I don't track ER2 but I do trade it sometimes based on IWM signals. My Friday trade triggered about 2:15 PM CDST which is the latest I'll take a signal. Are you blocking Fridays?

    I'm looking at a variation that trades a larger amount if the bar prior to entry exceed X percentage of the opening range. I'm just looking into it but inspecting the graphs seems to show that you get some good moves when the bar prior to entry has a big range in the direction of the trade.

    DS
     
    #274     Jul 23, 2005
  5. Questions for readers...

    Where can I go back to find the minute to minute 1m data for these products and/or other products (stocks, etc..) How much does that data cost? Do these come with them data it charts or just numbers, or both?

    I am working on a variation of this with some equities, and currently I have to input the highs and lows for each stock I am watching into an excel dosument (where it does some calculations for me) at the end of the opening time range...how can I automate this task to pull data from the market automatically into excel without having to manually input every time for like 100 different stocks? Thanks
     
    #275     Jul 23, 2005
  6. Hey Doug,

    Nice work -that’s a nifty little strategy you got there. So far, I am only paper-trading/observing it in real-time during the day while I wait for my discretionary trading setups.

    In case you wish to compare it with your IWM trades, I have attached a list of every trade signal this strategy would have generated during the past 12 months on ER2. I am not blocking Fridays in the code. In fact, one of the largest winners was on Friday 07/08/05. Actually, the code stands exactly as posted by you – I have only unblocked Mondays which your code had blocked for some reason (BTW, this hasn't really affected the results much).

    The performance summary attached reflects your code only. The strategy somehow seems to favor the long side. Though, the short side (and Max DD) also improves quite a bit once you add an initial stop-loss.

    Happy Trading.
     
    #276     Jul 23, 2005
  7. 2 observations I have made.

    Dougcs's system seem to perform better on IWM compared to ER2.

    Even on the IWM, performance seems to drop a lot in 2005 compared to 2004, though still acceptable. Could be some curve fit or it could be the generally less trendy market in 2005.



     
    #277     Jul 24, 2005
  8. I see the short signal too. 12:57.

    Would have stopped out.
     
    #278     Jul 24, 2005
  9. When I backtested this strategy, I used $RUT.x and used if I recall correctly 8 or 9 years of data. It showed a couple of periods of relatively bad performance like it has this year so I'm not concerned about what it is doing so far this year. Also, June and July have been good months for it so maybe we seeing an end to the trading range, but I don't try to predict I just follow the market.

    As far as optimizing, I optimized the number of bars for the "Opening Range" and picked 15 as that seemed to be in a stable region; ie, 14,15,16,17 all looked tradeable.

    I also optimized the ADV/(Adv+Dec)-0.5 ratio and again picked a stable region near -0.04; same comment for Trin.

    DS
     
    #279     Jul 24, 2005
  10. sidinuk

    sidinuk

    The_end,

    Thanks for pointing out my mistake with ER2 on Friday, your right it did trigger a short, losing, trading first. Shame!
     
    #280     Jul 25, 2005