Machine designed strategies. Do they work?

Discussion in 'Strategy Development' started by v75z52, Mar 20, 2012.

  1. v75z52


    I have looked at Trading System lab but they do not provide a demo. Some serious hype on the website but this is what a user of this program recently said:

    "TSL doesn't work. Tried it personally. Was not able to develop a single working strategy."

    A user of Adaptrade claims that "Strategies quickly fade"

    Another user of Adaptrade claims that "strategy does not perform (equity curve goes down) with new data beyond the out of sample period."

    Now it may be the case that these individuals failed to use the programs properly. What do you think?
  2. Occam


    I think that no economically rational agent would ever sell purely automated trading software that really works. So anything that's sold as such is all but guaranteed to fail, unless you're adding some serious value yourself (e.g., by extending the code or doing something discretionary in addition to the signal given by the software).
    spacewiz likes this.
  3. Humpy


    If anyone is so useless that they need hand holding then I can suggest collective 2 and zulu are worth considering.
  4. Craig66


    The one and only correct answer to this question.
  5. You have to understand that no software will make you rich unless you put in substantial time and effort. Most of these programs facilitate trading system development but users must have experience and willing to work hard. I use Price Action Lab but only as a tool to analyze price series for patterns. I do not expect it or any other program to offer me a final solution. That is not rational thinking and as Occam said no rational person would ever sell such program even if it existed.
  6. jcl


    Some machine designed strategies might work, others don't - this just depends on the algorithms and their implementation. As long as you don't know them, the only real way to find out is listening to people who are using that software. Comments by others who don't know that software might be well meant, but are useless for a purchase decision.

    The fact that Trading System lab don't provide a demo, and their price policy might give a hint, though.
  7. Good points. Have you used any such program jcl?
  8. Rational agent "jcl" is marketing a system / platform called Zorro :p
  9. jcl


    Seems you heard something, but got it wrong: I'm programming Zorro, not marketing it. Programming is when you write a program. Marketing is when you sell a program for money. :)
  10. Give it a name, talk about it on the internet, that's marketing.

    Perhaps you could think about buying a sponsorship here.
    #10     Mar 24, 2012