-------------------------------------------------------------------------------- Quote from easyrider: I honestly dont know how you would backtest rockets. -------------------------------------------------------------------------------- I tested "rockets" because specific criteria for them were posted and because the concept seems to make a lot of sense... trade stocks with good earnings (EPS) that are leading the pack (RS) and showing recent momentum (Stoch). But the results were unimpressive, perhaps because stocks meeting the criteria were also petering out. This was my methodology. Choose up, down, and sideways market test periods. Rank stocks based on EPS and RS percentiles (80 & 90) just prior to the start of each test period, in other words use the EPS and RS rankings that were available at the time. For the stocks that meet the EPS and RS cut in each test period, look for stochastic crossings (above 80). When there is a stochastic crossing, record how the stock does 1, 2, 3, 4, and 5 days afterwards. Then, for each test period, make "rocket" trade distributions and compare them to distributions of random entry trades of the same duration. I also tested variations -- lots of variations -- on the EPS and RS percentiles (80 & 80, 90 & 90, 80 & 90, 90 & 80, etc.). And stocks whose EPS and RS percentiles met the criteria for the last quarter only, combinations of past quarters and for the whole year. I also added float, price and volume screens, and even tested > 25% inside ownership. Bottom line: no significant edge. I understand time exits are not how one is supposed to exit a "rocket" but the way I look at it, if a "rocket" entry alone doesn't give more of an edge than a random entry, why not just throw darts? Had the entries by themselves shown a significant edge, I would have tested them with other exits. Not saying nobody's making money trading rockets. But in my opinion if they are, they're either lucky or their discretion is doing the heavy lifting. Or both. After that post of your back then, I asked for 10 equity curves. You replied that you weren't testing equity curves. Today you posted an equity curve. Do you have any other graphs like the two you have posted so far? If so could you make up a table of backtesting descriptors that summarize all you results and how you did the tests? could you also put in a few columns on the dart throwing comparison for each backtest? Maybe at some popint you may wish to post the core code and some of its variations so others can see three things: what you backtested, the results you got and how you did it then. After that it may be worthwhile to do some testing to see what happens when you use the PVT and SCT.
Well, good luck. The above will appear to you that I changed the rules yet once again. That is the way it goes. I am a logician and I just spent my time creating machinery. I really hoped others could understand my long posts and ask Q's. They don't and don't. Pool extraction doesn't fit into the CW and the myths of CW. Certainly it will always be thought of as something to judge with CW stuff. I liked having spent so much time as a parasite of CW in the slots I chose. Front running smart money was the most fun of all. Not to outdo smart money at all. It was to see how to make performance approach what the market offered.
for christ sake guys, if you have nothing good to bring to the table, please get the hell out of this thread. thank you jack for your support. I think i now have a solid base to recode the indicator for esignal. ill keep you all informed. i will have more questions if you don't mind. regards.
Jack, Jack, Jack... why do you keep adding new conditions and making everything so complex? Trading doesn't have to be that way. One thing I haven't told you is that I test just about every idea I find because I like to understand what works and what doesn't. Which is why I tested your stuff to begin with. Only problem has been that you and your followers keep changing the rules, trying to negate and obfuscate my findings which is why we keep going around and around. Let me assure you that I know what I'm doing and if your stuff worked, I'd be the first to give you credit. P.S. Not everything fails... here is the performance of a simple system THAT WORKS and doesn't use fundamental screens that I tested over 6000+ stocks:
the reason why i want to be able to code the indicator is to correlate it with my existing trading. for exemple, one of my system i use is a very simple ''enter on the pullback'' trend trading system i strongly believe that using the JH volume indicator as a filter would greatly improve the results of such a system. my manual testing of the indicator on ninja trader showed very promising results, keeping you out of a lot of bad trades, etc. I want to know more, and thats why i need to recode it on esignal. I have coded tons of automated systems on esignal that i actually use, so i know how to code. i just wanted some info, and most of what i needed has been provided to me in this thread. thank you everyone. meanwhile im reading all the threads and im trying to figure out the rest. I dont see where all the hate comes from, the method itself is simple. prices moves in channels, volume help you know whats going on, if a move is a real move, a retracement, a reversal, etc. Its quite simple actually. this forum seems populated by a bunch of incompetent people that cannot achieve anything. I believe that those people are the one bitching and moaning all the time. thanks again jack ehorn etc