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Do you have any review of Build Alpha trading system building software from your experience in the system building industry? Perhaps, one of your former students from your system building course tried it and shared with you their opinion.
I appreciate the response.
Thank you.
Can you help answer these questions from other members on NexusFi?
I know I said I would not post in this thread any longer, but I will answer questions about this strategy, if there is any interest...
I assume you are talking about this strategy
Crazy simple stupid...
input: daysback(65),stopl(3000),fac(1.5);
if ADX(14)>10 and close-close[daysback] crosses above 0 then buy next bar at market;
if ADX(14)>10 and close-close[daysback] crosses below 0 then sellshort next bar at market;
SetStopPosition;
SetStopLoss(stopl);
SetProfitTarget(stopl*fac);
ANSWERS:
The results shown are for 1 contract of CL, and include slippage and commissions.
In 2022, it has had a max closed trade drawdown of $7245 and a max intraday drawdown of $11895.
I am learning EL and would like to clarify something. When you said "(I hope it is not ...)"
Are there reasons for not using setdollartrailing or setpercenttrailing in strategies, because for example a fixed profit target works better generally in your experience?
Another question -- on using fixed dollar amount for stop loss -- CL price fluctuated with a wide price range over the past 10+ years. Why wouldn't you use a stop loss and profit target based on a % or multiple of price, or ATR?
No optimization at all, just a guess based on my experience. I like longer lookback periods (65 bars is roughly 3 months), $3K is a big stop but smaller stops usually get hit too much, and I like the feeling of profits being bigger than losses, hence the 1.5.
All performance for the last 8 months is after development.
Not for everyone for sure (you mentioned earlier you were shocked at my lookback length and reward/risk).
1. SetDollartrailing and SetPercentTrailing are only accurate with tick data (as part of Look Inside Bar Backtesting), so if you run backtest for more than 6 months (the TS limit for tick data history), your results will be completely and over optimistically bogus.
2. I have done a ton of research on the subject, you can find it if you look (I can't self promote and tell you where exactly to find it, but it is out there). Everyone says ATRs are the way to go. I do use them sometimes.
But Dollar values work better many times. Why? My guess is many traders think in terms of "I can lose $1500 on this trade" and not "I can lose 2.3 ATRs on this trade."
Yes, I have been able to put together a small puzzle trading robot; however, it is for the ES instrument.
A trading robot is just simple math and if-then logic. The trading robot does its calculation in a nanosecond, without making a mistake, or getting distracted. The robot does exactly what I teach it to do and it can even make the trades.
However, humans are better at exercising judgment and understanding a situation of when and when not to trade.
An example of not trading would be an FOMC announcement when liquidity dries up on the DOM. Another example would be the pre-market reports at 07:30 central time. In other cases, the rational thing is to crank up the volume when things are working. The human's job is to set the parameters based on the market conditions and their judgment about how we should trade each day, each half hour, or perhaps each 5-minutes.
In my opinion, the best trading systems use a human and a robot(s).
