Extremely simple strategies with > 100% annual return

Discussion in 'Strategy Building' started by jcl, Feb 1, 2012.

  1. Could you post pls the details of the backtest?
     
    #71     Feb 3, 2012
  2. +1
     
    #72     Feb 3, 2012
  3. You heard everyone. Take his word for it. Big words, no proof. Typical behavior of a crank.
     
    #73     Feb 3, 2012
  4. jcl

    jcl

    Sure, here's the performance sheet:

    Code:
    BackTest Workshop5_1 EUR/USD - performance report
    
    Test period         04.05.2008-30.12.2011
    Lookback period     541 bars (130 days)
    Assumed spread      2.6 PIP (roll -0.01/-0.01)
    Assumed slippage    2.0 sec
    Contracts per lot   7800
    
    Gross win (loss)    $10116 (-$5090)
    Average profit      $1375/year, $115/month, $5/day
    Max drawdown        -$1563
    Max down time       71 weeks from Sep 2008
    Largest margin      $400
    Trade volume        $1395980 = $381958 per year
    Capital required    $1963
    
    Number of trades    64 = 17 per year
    Percent winning     19%
    Avg trade return    $79 (+$843 -$98)
    Max win (loss)      $1658 (-$190)
    Avg trade time      43 bars (10 days)
    Max trade time      447 bars (107 days)
    Time in market      47%
    Max open trades     4
    Max loss streak     10
    
    Annual return       70%
    Profit factor       1.99
    Sharpe ratio        0.63
    Kelly criterion     0.56
    Ulcer index         17.48%
    Prediction error    72%
    
                        Fac Win/Loss Profit
    
    EUR/USD:L           0.3   3/28    909
    EUR/USD:S           1.7   9/24   4116
    
    The equity curves and other details of both simple strategies can be found in the Zorro workshops 4 and 5:

    http://zorro-trader.com/en/tutorial_trade.htm
    http://zorro-trader.com/en/tutorial_fisher.htm
     
    #74     Feb 3, 2012
  5. ssrrkk

    ssrrkk

    Okay you revealed your motive for this thread. Nevertheless, I can see some things from the site that I can use, e.g., dominant period, high pass to remove trend. I will also give the second order LPF a try. Thanks!
     
    #75     Feb 3, 2012
  6. Bob111

    Bob111

    you can't be serious ..#1: the number of trades is not enough to have statistically sound system. #2-can you handle 10 losing trades in row? CAN YOU? and where your account will be after that? those two just screaming out loud. lets' just leave alone 19% win rate. contracts per lot 7800-how much is it in $ per position?
     
    #76     Feb 3, 2012
  7. jcl

    jcl

    To answer questions #1 and #2: yes, and yes.

    I think I said it already about 20 times in this thread: This is not a tradable strategy. Do not attempt to trade it. A really tradable strategy needs > 200% annual return, a Sharpe ratio > 2, and some other parameters that are not fulfilled here. But it is a highly useful component for a professionally optimized compound strategy.
     
    #77     Feb 3, 2012
  8. ssrrkk

    ssrrkk

    By the way, I believe what you are doing is the smartest thing to do with regards to trading: sell tools that *almost" promise a dream. There is very little risk involved. There is little to no regulation to worry about. Low starting capital, just need the know-how (education, preferably graduate level science / engineering degree). Very scalable business with low cost distribution on the web. What's not to like?
     
    #78     Feb 3, 2012
  9. jcl

    jcl

    Selling tools that promise a dream is a sort of contradiction: if you have such a tool, and it works, you obviously don't need to sell it. I have no intention to sell tools. Nowhere on the Zorro website is anyone asking you for money.
     
    #79     Feb 3, 2012
  10. Bob111

    Bob111

    sorry, i didn't read the whole thing. all i saw is those numbers above, 100% return and 9 lines of code. first and last page of this thread :p
     
    #80     Feb 3, 2012