NQ Fully Automated Trading System

[Rickshaw Man]

What happened to your other system that just buys the dip

That is discretionary trading. This is a fully automated system.

 

[Rickshaw Man]

 

[Millionaire]

Slippage is thru the roof running micro contracts. If it took fewer trades that would be a possibility.

Sorry to have to point this out, but this is actually a major red flag because micro NQ has monster volume, 1.75 million contracts a day.
The Micro NQ price is very tightly arbed with the bigger NQ price, rarely goes out of line by much.

If your system cant make money live trading 1 lot of micro NQ, then i doubt it will make money live trading the full size NQ either.

 

[easymon1]

I've been working on this for about 10 years. It trades 2 full NQ contracts. I would estimate 10,000 hours of screen time observing just NQ. I have been working with easy language programmers, for TradeStation & Multicharts.

Why'd you switch from full NQ contracts?
Equity curve looks great. Doesn't even have that Sophomore slump.
No major drawdowns.
Could you put an 8ema on that equity curve please?

 

[d08]

Short side PF is 1.29, I would not trade that unless it does some real magic for the equity curve.

 

[traider]

1.29 in a raging bull market is decent unless slippage was not accounted for properly. I would do it because the market can't stay in bull mode forever

 

[d08]

I will continue to monitor this system going forward. No adjustments have been made for over 12 months. To my surprise it continues to perform well. I keep waiting for back to back monthly losses to occur. Some months start out losing and i think to myself, it's going to crash now, but it always recovers, as long as i don't mess with it. I will post the daily performance at market close.

Not enough data. The shorter your backtesting window, the better the fit. You've not seen all the market phases in this window. Longer term bear? Sideways for a year?

1.29 in a raging bull market is decent unless slippage was not accounted for properly. I would do it because the market can't stay in bull mode forever

That's assuming it has anything to do with a bull market. Some of my short stuff works better in a bull market, it's all in the timing.

 

[Zwaen]

Not enough data. The shorter your backtesting window, the better the fit. You've not seen all the market phases in this window. Longer term bear? Sideways for a year?



That's assuming it has anything to do with a bull market. Some of my short stuff works better in a bull market, it's all in the timing.

I do not know if it's possible, but you could ''flip'' your method to perform in a bearmarket, or trade your same method on an inverse instrument. Then you can mix money allocated to both 'methods' and maybe reduce your drawdown (the mix offcourse doesn't have to be 50/50). With this, also be aware of overfitting.

 

[d08]

I do not know if it's possible, but you could ''flip'' your method to perform in a bearmarket, or trade your same method on an inverse instrument. Then you can mix money allocated to both 'methods' and maybe reduce your drawdown (the mix offcourse doesn't have to be 50/50). With this, also be aware of overfitting.

Long side doesn't really mirror the short side, so it would not work. There's different dynamics at play - markets rise with low volatility and decline with high volatility etc.

 

[Zwaen]

Long side doesn't really mirror the short side, so it would not work. There's different dynamics at play - markets rise with low volatility and decline with high volatility etc.

Exactly, declines behave 'different' from rises. Some methods work in both ways, others don't. It all depends. Since we don't know the inner workings it's not possible to asses.