Searching Indicator for Small Gains

Discussion in 'Automated Trading' started by Wippi1817, May 17, 2018.

  1. Hello,


    I am currently developing a small trading strategy- i want to take small but "safe" profits (1% or lower) Therefore I search for indicators (or a couple of them) in order to have an safe entry. Can you help me on this issue? Which indicators can you recommend? I would like to search in bigger timeframes (2h,4h etc.) and make the trade in 1 min chart.

    Would be great if you can help me in this issue.

    Thx
     
  2. cvds16

    cvds16

    over 95% of ET would like to get that ... it won't happen ...
     
  3. tommcginnis

    tommcginnis

  4. Jakobsberg

    Jakobsberg

    May as well be looking for eternal life. In the meantime just keep it simple and buy when the VIX is falling below 20 after a spike. Sell when it gets below 10 or flattens out. Seriously. Back test it.
     
    Statistical Trader likes this.
  5. Handle123

    Handle123

    Define: safe entry?

    Yea, wouldn't it be great if I knew how to fly without wings? maybe like attach a swing to a huge drone.

     
    beginner66 likes this.
  6. It's kind of you to include this information, @Jakobsberg. I WILL back test it, thank you, and if it passes the back test, I will run other tests too to avoid the risk that the strategy was over-parameterized.

    I'm just wondering what date your back test on this strategy starts. There is VIX data back to 1990... did you test it back that far? By how much does it beat buy and hold (risk-adjusted or not...whatever you wish to share)?

    If you don't want to answer or don't have the time, I don't blame you, but I just thought that since you were kind enough to mention the strategy, you might be willing to answer those questions so I can prioritize when I analyze it (I have a very long backlog of strategies to test).

    Happy trading!

    ST
     
  7. Xela

    Xela


    I tried, in another thread you started, but I'm not sure how welcome what I offered was, there.

    Undaunted (for now, anyway!), I'll have another try here, and please appreciate that I'm trying to help, not trying to criticise.

    It seems to me that your statements above (and especially the "therefore, I search for a couple of indicators to have a safe entry") stem from a couple of pre-existing beliefs you have, which - to put it mildly - are not necessarily helpful ones for you to have at this stage.

    The first is the assumption that profitable trading systems revolve around "safe" trade entries, and the second is the assumption that trade entries revolve around indicator signals.

    Neither is necessarily true (at least, not in terms anything like as directly causative as I strongly suspect you imagine) and both are self-imposed limitations that will ultimately do you a disservice.



    Well, please excuse my mentioning my own belief that in the long run, helping you with other issues would actually prove far more helpful to you. And that (IF your metaphorical cup's empty enough for me to try to pour a little something into it, about which I'm far from confident) I can try to do: I suggest you start here, do some good and helpful reading as mentioned there, and don't start off with too many assumptions which may well end up frustrating and disappointing you. And good luck!
     
    Last edited: May 17, 2018
  8. Jack1960

    Jack1960

    Just use price action
     
  9. Jakobsberg

    Jakobsberg

    It just one of several things I look at when buying back into market when 'fear' starts to dissipate. Also you do not pay much for Option time value at that point. Of course figuring out if in bull or bear market is going to make world of difference.

    Send me a PM when you have done some Work!
     
  10. lindq

    lindq

    The last signal generated by your 'system' was on 14 February of this year. Since that date, the market has run flat and the VIX has not fallen below 10, and shows no signs of doing so.

    Thus, your trade is still open. And the OP is going to be making money, how?
     
    #10     May 18, 2018