Selling trading strategies

[fan27]

Ok, there is some ambiguity in the described strategy. "if a profit target/stop loss has been hit." What target / stop? And "In addition, the trade will always exit at 2:30 Central time the day after its entered if the other 2 conditions have not yet been met." What conditions?

But the thing I find most sensitive is buying options for protection, and a lot of them. "I end up paying about 10% of my account value each year to maintain this hedge."

Well 10% per year is a ton of money, if you were purely long stock and not do other tricks, 10% would pretty much wipe out all your gains on average. If you sell ATM options, on average you make some 10% per year so again buying other options to protect (rather than delta-hedging and finger crossed), would again nullify your edge.

Below are my strategies backtested with "less risk". I have been running some the strategies live for awhile now but the below mix of strategies have only been running for a few weeks.

Below is more risk which I would not trade without some sort of hedge.

Note that the years with single digit performance would likely have performed better with some sort of hedge in place. I am willing to give up 10% of account via a hedge in other years as net gain should still be acceptable.

 

[Aquarians]

Below are my strategies backtested with "less risk". I have been running some the strategies live for awhile now but the below mix of strategies have only been running for a few weeks.

[...]

Below is more risk which I would not trade without some sort of hedge.

[...]

Note that the years with single digit performance would likely have performed better with some sort of hedge in place. I am willing to give up 10% of account via a hedge in other years as net gain should still be acceptable.

Well yeah, if you make 50% return then can afford to give up 10%, as long as that 50% is a long term average.

 

[fan27]

Well yeah, if you make 50% return then can afford to give up 10%, as long as that 50% is a long term average.

If I could average net 20 to 30 percent annually I would be very happy.

 

[trend2009]

Below are my strategies backtested with "less risk". I have been running some the strategies live for awhile now but the below mix of strategies have only been running for a few weeks.

View attachment 248648

Below is more risk which I would not trade without some sort of hedge.

View attachment 248649

Note that the years with single digit performance would likely have performed better with some sort of hedge in place. I am willing to give up 10% of account via a hedge in other years as net gain should still be acceptable.

how long you hold ?

 

[fan27]

how long you hold ?

I have two strategies that trade the overnight session and will exit before or at the regular session close.

One short strategy that could hold for up to a few days.

One strategy that scales into selling pressure on the daily time frame and it could hold up to a couple of weeks.

These are all ES based strategies but I am trading MES live to help with fine tuning position sizing.

 

[hilfspaul]

Yes, a successful trading strategy can really help a trader in the long and short run. Everyone should look for at least one and stick to it.

 

[ironchef]

It's statistical trading not HFT so it's correlated to the underlier. But I've designed it precisely with respect to a long position in the unnderlier such that:
- makes more when underlier goes up
- loses less or even stays profitable when underlier goes down

@Handle123 posted a similar approach a few years back, for us retails.

 

[ironchef]

From 2002 up until today.

You need to go back further in time.

I did my SPY backtest all the way back to 1993:

A long only strategy can not prove its edge in the bull market