Finate State Machine (FSM)-based long-term strategies

abrakadabr17 · Sep 9, 2018

Hi Guys,

I am developing an online-service offering historical/statistical back-testing of completely parametrizable FSM-based long-term stratergies (max 1 trade a day).

Could you please suggest which FSM strategies you would be interested to see and have simulated?

I would be glad to have them integrated and tested for you and free access provided once it's ready.

Thank you.

fordewind · Sep 9, 2018

Price action

2rosy · Sep 10, 2018

abrakadabr17 said:
Hi Guys,

I am developing an online-service offering historical/statistical back-testing of completely parametrizable FSM-based long-term stratergies (max 1 trade a day).

Could you please suggest which FSM strategies you would be interested to see and have simulated?

I would be glad to have them integrated and tested for you and free access provided once it's ready.

Thank you.

first you need to know what a finite state machine is. It's a software design pattern and unrelated to strategies although you could use it to keep "state".
a simple example is a light switch (on/off)

Snuskpelle · Sep 10, 2018

2rosy said:
first you need to know what a finite state machine is. It's a software design pattern and unrelated to strategies although you could use it to keep "state".
a simple example is a light switch (on/off)

Yep, also;

In the video game industry for strategy games we avoided FSMs wherever possible because a system easily is in wrong state at the time a decision is needed.

I do code with FSMs occasionally, e.g. to separate between the states of being uninvested and invested (which makes sense for certain algos), but it's not anything that has anything to do with the trade strategy.

FSMs are very low tech and among the easiest things to code.

abrakadabr17 · Sep 10, 2018

2rosy said:
first you need to know what a finite state machine is. It's a software design pattern and unrelated to strategies although you could use it to keep "state".
a simple example is a light switch (on/off)

Thank you for your response. I actually have Masters in Computer Eng. and think I do know what FSM means.

Actually, I would like to slightly refrase my question:

Imagine I approached you as as a friend asking for an alternative to Buy-n-Hold or Buy-the-Dip or some SMA-constrained variation thereof for managing my longer term investments.

What would be your suggestions? Which strategies would you suggest? Which indicaters would you consider placing a Buy or a Sell order?

abrakadabr17 · Sep 10, 2018

Snuskpelle said:
Yep, also;

In the video game industry for strategy games we avoided FSMs wherever possible because a system easily is in wrong state at the time a decision is needed.

I do code with FSMs occasionally, e.g. to separate between the states of being uninvested and invested (which makes sense for certain algos), but it's not anything that has anything to do with the trade strategy.

FSMs are very low tech and among the easiest things to code.

Thank you for your response.

Actually, I would like to slightly refrase my question:

Imagine I approached you as as a friend asking for an alternative to Buy-n-Hold or Buy-the-Dip or some SMA-constrained variation thereof for managing my longer term investments.

What would be your suggestions? Which strategies would you suggest? Which indicaters would you consider placing a Buy or a Sell order?

abrakadabr17 · Sep 10, 2018

fordewind said:
Price action

Thanks a lot. Will check it out.

Actually, I would like to slightly refrase my question:

Imagine I approached you as as a friend asking for an alternative to Buy-n-Hold or Buy-the-Dip or some SMA-constrained variation thereof for managing my longer term investments.

What would be your suggestions? Which strategies would you suggest? Which indicators would you consider placing a Buy or a Sell order?

rb7 · Sep 10, 2018

abrakadabr17 said:
Thanks a lot. Will check it out.

Actually, I would like to slightly refrase my question:

Imagine I approached you as as a friend asking for an alternative to Buy-n-Hold or Buy-the-Dip or some SMA-constrained variation thereof for managing my longer term investments.

What would be your suggestions? Which strategies would you suggest? Which indicators would you consider placing a Buy or a Sell order?

Could you repeat your question???

2rosy · Sep 10, 2018

abrakadabr17 said:
Thank you for your response. I actually have Masters in Computer Eng. and think I do know what FSM means.

Actually, I would like to slightly refrase my question:

Imagine I approached you as as a friend asking for an alternative to Buy-n-Hold or Buy-the-Dip or some SMA-constrained variation thereof for managing my longer term investments.

What would be your suggestions? Which strategies would you suggest? Which indicaters would you consider placing a Buy or a Sell order?

factor covariance model. if you have access to a good optimizer it can be done in a reasonable amount of time (ie. gurobi, mosek).