Our 400,000 Trade Test Proves Using Stops Is Not Very Bright

Discussion in 'Risk Management' started by marketsurfer, Mar 11, 2016.

  1. J_Smith

    J_Smith

    You felt right at home then:D

    J_S
     
    #171     Mar 13, 2016
  2. 100's of tests with multiple variations of entry rules were applied. It really doesn't matter to me if its "believed" or not. Just stating the results of the testing-

    Could there be trading savants toiling away in some dungeon who obtain different results via intuition ?

    Sure, but i prefer to stick to the tested facts.
     
    #172     Mar 13, 2016
  3. destriero

    destriero

  4. Nope, just some more evidence that stops degrade performance of trading systems.
     
    #175     Mar 13, 2016
  5. I Know You

    I Know You

    Very very interesting, thank you for the recommendation. I will never use a stop again.

     
    #176     Mar 13, 2016
  6. botpro

    botpro

    Here's a similar study about Stops:

    "Stop-Loss Orders: Help or Hindrance?"
    http://www.incrediblecharts.com/trading/stoploss-trading-1.php

    One of the authors of the research paper from the year 2008 surf had posted here as a reference to back his own findings is the very same author of the above study.

    That same author seems also to have conducted an other study about the usage of TrailingStops, but that study I have not searched/found yet.
     
    #177     Mar 13, 2016
  7. botpro

    botpro

    A test can be long, looong, loooooong, veeery loooooooooog....
    Some maths helps, really, try it!... :D
     
    #178     Mar 13, 2016
  8. destriero

    destriero




    From some dude from some uni that nobody has hear of, using ATR?

    Surf, think of how much sim-monies you would have saved with your recent (last 10 trades) YM trades had you covered instead of adding.
     
    Last edited: Mar 13, 2016
    #179     Mar 13, 2016
    I Know You likes this.
  9. botpro

    botpro

    Nope, you just demonstrate that you have absolutely no idea about system testing with simulated data.
    I don't need to do curve-fitting. Curve-fitting is usually done by those who use past data,
    but I prefer forwardtesting with realtime sources, and also simulated data because one can test quickly and cheaply 1000s of market situations.
    Read my this recent reply in an other thread:
    http://www.elitetrader.com/et/index.php?threads/100-wins-over-240-days.298459/page-4#post-4258495

    Really, I just wonder about the IQ of those people who still question the usefulnes of simulated market data for system testing... Amoebe-IQ I would say...
     
    #180     Mar 13, 2016