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that means for everytrade there is 10,000 worth of equity being bought
keep in mind this is for long entry only.. buy when poly crosses above .2 sell when crosses -.04
no short entries are include
Can you help answer these questions from other members on NexusFi?
No need to do anything through PM.
(I mean: you can PM me if you want, but no need to handle what is discussed in this thread by PM.)
Anyway, I do not use Trade Station. So I could not cross-check your results.
My point was just that, as you know, it is not really wise / reasonable to trade without stop-loss. You perhaps should implement one in your strategy.
I've tested it out and frankly, I don't see much difference from a host of other momentum indicators.
The problem with single indicators, is that the vast majority are lagging....to the point that by the time you recognize a move, half of it is already gone. If you try to ratchet down the sensitivity, then you also include a bunch of false signals.
You could use this in convergence/divergence or in conjunction with other dynamics, but stand alone....even on a wide range of settings, the value rises with upward bars and falls with downward bars...nothing really groundbreaking.
As far as thresholds to buy or sell, I find that to be fairly curve fitted.......you could dial the settings in to be fairly profitable....but even slight changes in market structure can have drastic effects on performance with unseen/future data.
I'd try to use this in conjunction with something else........perhaps something totally price based (localized support/resistance).....etc.
"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
ill try the stop loss but i agree with you rm99 in the class of momentum indicators i think it is one noting i think to have a complete sytem u kinda have it all your band indicators, momentum, volume indicators, combined with moving averages or resistance kinda have to pick the ones in the categories that fit ur trading style aswell im looking for high accuracy trades and more frequent trading so i dont think that the 40-55% accuracy this gave me does to well *by itself combined with other thing accuracy will def go up..but i am just learning to program and this is kinda my first go at it so i am very happy
thanks you alll
my next mission is slope of adx ill post it in a new thread if i need help
ps here are my scripts just to be thourough
inputs: Price( Close ),Length( 8 );
Variables:
num ( 0 ),
indexN ( 0 ),
accuN ( 0 ),
denom ( 0 ),
indexD ( 0 ),
accuD ( 0 ),
offset ( 0 ),
Pm ( 0 );
accuN = 0;
for indexN = 1 to length+1 begin
if indexN > length then offset = length else offset = indexN;
accuN = accuN + (price - price[offset]) / SquareRoot(indexN);
end;
num = accuN;
accuD = 0;
for indexD = 1 to length+1 begin
accuD = accuD + SquareRoot(indexD);
end;
denom = accuD;
pm = (num/denom);
if Currentbar > 1 and Pm crosses below -.04 then
{ CB > 1 check used to avoid spurious cross confirmation at CB = 1 }
Sell ( "Poly SE" ) next bar at market ;
---
inputs: Price( Close ),Length( 8 );
Variables:
num ( 0 ),
indexN ( 0 ),
accuN ( 0 ),
denom ( 0 ),
indexD ( 0 ),
accuD ( 0 ),
offset ( 0 ),
Pm ( 0 );
accuN = 0;
for indexN = 1 to length+1 begin
if indexN > length then offset = length else offset = indexN;
accuN = accuN + (price - price[offset]) / SquareRoot(indexN);
end;
num = accuN;
accuD = 0;
for indexD = 1 to length+1 begin
accuD = accuD + SquareRoot(indexD);
end;
denom = accuD;
pm = (num/denom);
if Currentbar > 1 and Pm crosses above .02 then
{ CB > 1 check used to avoid spurious cross confirmation at CB = 1 }
Buy ( "Poly LE" ) next bar at market ;
If you are "just learning to program", do not forget to take into account commissions and slippage. I do not know Trade Station, but I am sure that there are parameters for this.
Moreover, stop-loss are necessary.
And, typically, for a long, ( entry - stop-loss) in $ shall be 1% of the capital (or another %). This mechanically limits the size of the position.
(Of course, there are other ways to size position. This is just the most basic.)
Take care of the "maximum intraday drawdown".
In the above test, it was roughly -$11,500.
It means that, if you had begun this system just at the start of the drawdown, your account would have decreased from $50,000 to $38,500. Would you have continued to use this system in real life? Me, probably not.
The best performance indicator is, for me, the "look" of the equity curve. The more it climbs up smoothly, the better.
Another idea: there is a risk of curve-fitting.
Are the parameters robust?
If you change a little 8, 0.2 and -0.04 (for instance to 6, 0.15 and -0.03), what is the impact on the performance? small degradation or huge degradation?
If there is a huge degradation, it is probable that your parameters luckily fit the past. But the performance will not repeat itself in the future.
