Turning on and off a strategy ...

Discussion in 'Strategy Building' started by mizhael, Sep 10, 2010.

  1. Well my signal generation may not use technical analysis, but I ought to have a stop, as a defensive measure, to reduce my drawdowns...
    but this purpose, with out the "technical analysis garbage", what shall I do?
     
    #11     Sep 13, 2010
  2. Keep it as simple as it is:
    [​IMG]
    :D :D :D
     
    #12     Sep 13, 2010
  3. MGJ

    MGJ

    There are other possible actions besides "turning a strategy off" and "turning a strategy on".

    Perhaps you may want to alter a strategy's position sizes. When the strategy is trading normally, think of that as "running at 100% of normal position size". If you wish, you can reduce a strategy's position sizes and run that strategy at 33% of normal position size. Or, you can increase a strategy's position sizes and run that strategy at 250% of normal position size. It's completely up to you.

    There's no requirement that you MUST have only two position sizes, 0% and 100%. God gave you lots of other numbers, maybe you can find a way to put them to good use.
     
    #13     Sep 14, 2010
  4. bone

    bone

    Any time you introduce an arbitrary human decision into a mechanical trading system the entire premise is hopelessly compromised.

    If your human logic was as rules-based and lucid as the trading sytem of course it would not be an issue.

    Human decisions are never uniformly applied.

    Selective applications of logic are imperfect.

    Occam's Razor.

    Get into a trade and let yourself get taken out. Take a portion and do it consistently.
     
    #14     Sep 14, 2010
  5. If your equity curves are so smooth, why turn the strategies off?
     
    #15     Sep 16, 2010