My edge isn't what I thought it was

Discussion in 'Trading' started by Naturex, Sep 30, 2019.

  1. Orbiter

    Orbiter

    I don’t know. But I spend a lot of time trying to find reasons for my strategies not to perform. The nice thing about automation is that I have plenty of time to worry about improving the strategy development process as opposed to worrying about specific trades.

    There are a few ways I go about it none of them bullet proof:
    1. The strategy has to work on baskets on random stocks, various stock universes
    2. I try to minimize the number of variables and backtest on walk-forward out of sample rolling windows where I try not to pick any parameters
    3. If I do optimization i look for consistent intervals and try not to pick the peaks so to speak.
    4. I look for consistent results over various trading regimes.

    If you have any other suggestions I’d be glad to hear them.
     
    #31     Oct 1, 2019
    d08 and beginner66 like this.
  2.  
    #32     Oct 5, 2019
  3. What is the profit factor of your strategy?
     
    #33     Oct 5, 2019
  4. Blondy007

    Blondy007

    What I find particularly helpful that helped me on my trading journey is to watch pro traders and do the same trades they're doing. Example here http://bit.ly/2oUJ5F4 You know what they say, who you hang around with is who you become. Or monkey see monkey do. That gave me an edge
     
    #34     Oct 5, 2019
  5. Blondy007

    Blondy007

    Perhaps you should be a day trader, or trade the hour or the minutes if waiting bothers you
     
    #35     Oct 5, 2019
  6. Orbiter

    Orbiter

    I have been running multiple ones mostly EOD so the profit factor differs by strategy but it’s on average about 1.5. Why are you asking ?
     
    #36     Oct 5, 2019
  7. traider

    traider

    What is the profit factor for trend strategies vs mean reversion ones?
     
    #37     Oct 5, 2019
  8. Orbiter

    Orbiter

    The 1.5 mentioned in my previous post was mostly for mean reversion. For trending strategies I can get closer to 2.0. So maybe that bumps up the average a bit.

    I am sure strategies in other time frames have different profit factors. Anyone can share some numbers for intraday trades ?

    Again that’s all EOD stuff, taking in consideration survivorship bias and index constituents.
     
    #38     Oct 6, 2019
  9. Cannot understand why peoplebother with forex and stocks-for excitement go buy a motorbike, for trading, use index options. Why put yourself in the bearpit when you can trade on the level playing field?
     
    #39     Oct 6, 2019
  10. Orbiter

    Orbiter

    Promise not to seek excitement in stocks. They say motorbikes are more fun are way safer than stocks anyways.

    Seriously now. How do trading index options solve the anxiety problem ?
     
    #40     Oct 6, 2019
    Windlesham1 and d08 like this.