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T.O.A (Theory Of A (theoretical trader(t(2))))


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T.O.A (Theory Of A (theoretical trader(t(2))))

  #31 (permalink)
 SuperBliss 
Denver, CO
 
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gregid View Post
...Although I have a soft spot for simple algorithms I would be concerned with commission costs that could eat you even if the theory is correct.

i have the same concerns as you regarding

commissions on the values shown in my screenshots (they aren't practical)...


i believe i performed/explored this theory test on something like a 16 tick chart in the CL...

although im sure it could be done...i wasn't thinking of actually trading (non theory) that timeframe


i explored that timeframe because i wanted to see how it (the theory)

performed in an extremely high volatility situation...

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  #32 (permalink)
 SuperBliss 
Denver, CO
 
Experience: Beginner
Platform: NinjaTrader
Broker: NA
Trading: NA
Posts: 62 since Jan 2010
Thanks Given: 383
Thanks Received: 8


gregid View Post
...I believe your theory could be easily tested via strategy backtest or indicator. Have you attempted such verification?


1.-----i have lightly verified/tested/explored this theory in a handful of ways (observation, mind-mapping, spread-sheeting, etc)...


2.-----i have attempted more traditional testing/exploring methods (i attempted to create an indicator)

2.1----but my programming skill level is probably way below most people on futures.io (formerly BMT)...


3-----so, i resorted to simplifying the theory (so i could 'program' it in a simpler visual method/manner)...


4.-----this turned out to be ok because it led to a theory of this theory (progress in usefulness) ...


5.-----on the down side i quite attempting to verify/express/explore this theory in the more traditional (indicator, backtest, etc) way

BUT...

i would be extremely grateful for and fascinated
with all the results produced by
any and all tools (strategy backtest or indicator)
that could be created with this theory in mind...

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  #33 (permalink)
 SuperBliss 
Denver, CO
 
Experience: Beginner
Platform: NinjaTrader
Broker: NA
Trading: NA
Posts: 62 since Jan 2010
Thanks Given: 383
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PLEASE NOTE:

X can be any thing (ie any amount of units..1,2,3, etc...)
This set of theory rules is one of an infinite set.
The rules are interesting but far less important than the theory.

Trend_Trade_After_X_Unit:

This tells (you) to add 1 contract to the position at X units.
If X = 1 and the strategy is long,
then, at +1 unit profit (you) should add a contract ...
visa versa for shorts.

CounterTrend_Trade_After_X_Unit:

This tells (you) to add 1 contract to the position at X units.
If X = -1 then (you) should add a contract when the strategy is at -1 units.

Reverse_After_X_Unit:

This tells (you) to reverse the position at X units.
If X = -2 then (you) will reverse (the new net position should be 1 contract)
the position when the strategy is at -2 units.

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Last Updated on March 5, 2015


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