If you don't have Howard Bandy's books you should consider buying them. Howard discusses means of performing statistical analysis on returns in order to determine if a system is still working (i.e. has a positive expectation). Sometimes the market goes out of sync with a strategy. How long it will be out of sync is anybody's guess but you need to be able to determine if you should take action such as reducing position size or stop trading. No strategy works well all the time but it is important to monitor closed trades.
Successful System Traders
- Thread starter Dhalsim
- Start date
This thread has many comments on systems and on strategies.
The findings posted are to be expected.
Any approach that is incomplete cannot be expected to work.
Of course this fact is difficult to deal with.
Secondly, in markets, the question of latency only comes up for incomplete systems. The market concept of "making money" is founded on the opposite time factor than latency. Trends where price changes are the foundation of making money.
To be outstanding in doing the objective of making money, a person has to use the system of operation of the markets.
Mostly everyone gets to learn system analysis at a young age. For quick reference refer to how you learned Multiplication and reading. Both fit under the egis of finite math.
If you look at adjacent price bars using H and L there are 10 cases. If you look at sentiment measured turns of trends there are three cases. Probably none of you know these things at all. Making money comes down to two cases of price and one of the three types of turns.
All of you mananged to learn to multiply. Most of you learned to read. To do these things you use 10 digits and 26 letters.
So how hard is it to use the definition of long sentiment and short sentiment to READ price? It is not dfficult.
Admittedly, none of you can read turns using sentiment. BUT at least you can be told that you are ignorant and you will never learn to read turns properly.
In most intellectual endeavors the opportunity comes and goes. What closes the door forever is how mythical beliefs forever close the mind to understanding the reality of a context. If you come to have mythical beliefs, you screw your mind forever. You get the consequences of what you believe by doing things improperly.
So if you begin to develop and design something, you must make it complete before you use it. If you use something before you know the system of operation to which you apply it, you are fucked completely.
Don't use base 10 multiplication to to solve base 2 math problems. The algebra of each base is different than the algebra of any other base. If you learn to read English, don't expect it to apply to reading French.
Stay out of trading until you know the system of operation of the market.
The findings posted are to be expected.
Any approach that is incomplete cannot be expected to work.
Of course this fact is difficult to deal with.
Secondly, in markets, the question of latency only comes up for incomplete systems. The market concept of "making money" is founded on the opposite time factor than latency. Trends where price changes are the foundation of making money.
To be outstanding in doing the objective of making money, a person has to use the system of operation of the markets.
Mostly everyone gets to learn system analysis at a young age. For quick reference refer to how you learned Multiplication and reading. Both fit under the egis of finite math.
If you look at adjacent price bars using H and L there are 10 cases. If you look at sentiment measured turns of trends there are three cases. Probably none of you know these things at all. Making money comes down to two cases of price and one of the three types of turns.
All of you mananged to learn to multiply. Most of you learned to read. To do these things you use 10 digits and 26 letters.
So how hard is it to use the definition of long sentiment and short sentiment to READ price? It is not dfficult.
Admittedly, none of you can read turns using sentiment. BUT at least you can be told that you are ignorant and you will never learn to read turns properly.
In most intellectual endeavors the opportunity comes and goes. What closes the door forever is how mythical beliefs forever close the mind to understanding the reality of a context. If you come to have mythical beliefs, you screw your mind forever. You get the consequences of what you believe by doing things improperly.
So if you begin to develop and design something, you must make it complete before you use it. If you use something before you know the system of operation to which you apply it, you are fucked completely.
Don't use base 10 multiplication to to solve base 2 math problems. The algebra of each base is different than the algebra of any other base. If you learn to read English, don't expect it to apply to reading French.
Stay out of trading until you know the system of operation of the market.
Hi there, interesting thread!
Do you employ the GA's for pattern search and defining entries/exits and run a strategy with fixed rules or do you let the GA's dynamically set the rules within the runtime of the strategy?
Which kind of GA's do you employ?
What do you mean with Efficient Frontier?
Of course you only need to answer the questions you feel comfortable with
