Could you help me setup something similar, where do I start? I would like to use my IB account to do similar things and backtest strategies but don't know where to start... Thanks in advance...
This is such an open ended question. It depends on many factors, for example can you code, or would you prefer to buy a pre-packaged solution, how much trading experience do you have. And most of all, how much time are you willing to invest in it. To me, it's pretty much the same as a second job.
Hi @HobbyTrading, thank you for your remark. The actual results keep being almost identical as expected from the backtest. There have been quite a few swings in the equity curve, not visible from the monthly totals. As for any trend following system the drawdowns are not negligible, however in this system they are much less than the index. Annualized return almost the same so far, though.
I’m catching up so I’m months behind, but this is an insight few have. High vol=probable drops. Low vol= blue skies ahead. Also, volatility is pretty straight forward without convoluting it with put/call ratios. Range is more than enough to peek at what’s what.
Also, focusing on avoiding volatility is probably what is keeping me from coming up with a profitable short strategy. All my current strategies are long side only.