You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Trading algorithm stopped working(?)
- Thread starter AlphaMale
- Start date
Turn A Good System Into An Amazing System with Equity Curve Feedback!
Equity curve feedback is an exciting technology that can help you turn a good system that you may have into an amazing system! It can be incorporated either into your own trading strategies or as a filter for other strategies. This technology can help you reduce drawdowns and preserve capital. As any trader can tell you, this is essential to reducing risk and preserving your hard-earned money!
Murray Ruggiero's exceptional TradeStation toolkit, the Equity Curve Feedback Toolkit, lets you easily incorporate this powerful technology with as little as one line of code. Designed for TradeStation, this toolkit lets you have a trading simulator that keeps track of the equity curve separate from your real trading strategy. You can then turn your system on when the equity curve is positive and turn it off when the equity curve is negative.
Click Here for more information
This is a principle i apply in virtually almost every algo, unless I see very stable returns over a long time period (10+ years).
I don't really get what you're saying either, however I'd like to phrase it differently: markets move through different market regimes. In this case, the algo was optimizied specifically for a certain market regime, which contains certain non-random elements. However, once this particular market regime changed, the algo tries to look for the same non-random elements, which inherently are no longer there, and therefore finds random elements instead. Comments?
I don't really get what you're saying either, however I'd like to phrase it differently: markets move through different market regimes. In this case, the algo was optimizied specifically for a certain market regime, which contains certain non-random elements. However, once this particular market regime changed, the algo tries to look for the same non-random elements, which inherently are no longer there, and therefore finds random elements instead. Comments?
I only read the last page of this thread. I am sorry I wasn't aware your strategy worked for 3 years. In a typical parameter space a wide plateau is obviously preferable to a peak surrounded by red. I made several incorrect assumptions but moving past that and beyond my pet peeves about trading terminology I suggest altering your search from a parameter space if indeed that's what you were optimizing, and instead focusing on strong logic which you may already have been doing ...but this time require the logic be viable across a wide spectrum of the parameter space.