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A good example would be using daily ATR values to formulate an intraday model.

Good for fast testing, but it lacks a stable execution engine. This is VERY important.

For sure. A garbage white box can’t be morphed into a solid grey box. You can polish a terd from 100 angles, but...... :)

Nicely explained post above from the perspective of end user. An algorithmic trader should always have full access (white box) to the source code, whether they engineered the strategy, or not. Assuming that blindly running black box strategies is a pipe dream (which I believe), the progression...

@tommcginnis I explained it the best I can. @Simples did a good job of explaining the box structures, but getting back to the point of the thread, you won't find a market timing edge that beats the index benchmark using MA crossover trading rules on 1-day candles. You need to get much more...

I’ll try to expand. For a black box strategy, it would indeed be easy, but I’ve yet to discover one with a sustainable life cycle. I assumed everyone here would assume that. Not saying it doesn’t exist though. It’s a big world out there. Personally, I’ve found gray box strategies provide the...

Please don’t take umbrage, but I don’t believe you. IMO, none of that stuff will help you build a functional trading model. I see nothing concrete there.

Welcome back. Always enjoyed your content, regardless of everyone trying to piss on your party.

Probably the most logical first post on ET. Automating execution is a monumental task by itself, but doing the proper analysis in terms of data quality and accuracy is where most fail. It’s extremely difficult to do good walk-forward analysis, without sufficient time, and capital investment.

If you want to make a serious business out of trading, with large stake investment, absolutely yes. If you’re hobbying around markets from your cell phone at work with a piker Robinhood account, than no.

This whole “reading price action” thing is a fallacy. Don’t buy into it, or you’ll go broke. You make money by numerically measuring price moves within a structured model. Only then can you have the confidence to push leverage, and know what should, or shouldn’t happen. No need for complex...

Funniest thing I’ve read in a while :)

No there isn’t. All dreamers and dream sellers. The only at home traders that make it use broad concepts, outside the noise and variances. Don’t drink the Kool-Aid. Test it out, and you’ll see for yourself.

How many strategies can you apply to each chart/instrument? That’s what I meant by stacking.

Thanks for that. I just skimmed through it. I guess everyone decides what leaps of faith they’re comfortable with, and then move forward from there. I chose the path of least resistance with some trade-offs, and I’m comfortable with that. All peaches and cream solutions don’t exist in this business.

I use MC for simulation. The MC bar magnifier feature allows for fairly accurate trade simulation at tick level. Other factors like data quality, instrument liquidity, and strategy implementation enhance the accuracy, especially in regards to order fill capability. What MC or NT can’t do is...

That’s a pretty bold claim. Can you prove they can see all your source code? Although they maintain a constant connection to their servers to protect their own IP, I’ve never heard of one case involving end user privacy issues. IMO, you’ve completely misconstrued that purpose, which they’ve...

Just a word of advice. These aren’t the type of patterns you can use in a robust model. I’ve beat these to death years ago. Narrow your testing down to time-series momentum/trend and reversion analysis. In my years of research I’ve found momentum outperforms reversion, though I still analyze...

The best VPS, is no VPS, but if you live off the grid somewhere, I can see the need.