why strategy fails?

[robinxing]

some reasons are the strategy could not filter the volatility of the price action efficiently

ATR stops are common volatile stops

I have applied these techniques in my strategy but it is not very efficient


I hope I could find some more efficient entry or exit ways

I hope some experts could recommend some good articles on this theme

thank you

 

[risktaker]

That's the reason for 99% of system failures. What else is new?

Quote from robinxing:

some reasons are the strategy could not filter the volatility of the price action efficiently

 

[Ialwayslearn]

What would be an example, as you understand it, of not filtering volatility properly?

I ask, because I do a lot with volatility.

 

[robinxing]

for example simple moving average system

 

[kut2k2]

Quote from robinxing:

for example simple moving average system

try zero-lag moving average

zero-lag data smoothers

 

[joesan]

Maybe you did not backtested the strategy long enough before putting them into action. If your strategy can fit the market environment of 2004,2005,2006, they have a much stronger chance of doing well now. The nature of the market your are trading (HSI ) has not changed from the day it was launched, but it does get some pills of vigra sporadically, like what we saw in 2007.

 

[intradaybill]

Quote from kut2k2:

try zero-lag moving average

zero-lag data smoothers

Quote from the first site:

"Almost Zero Lag Moving Average

To smooth it out further, one may apply it twice with smaller period for the second. But again, you cannot make the lag zero! "

There is no such animal as a zero-lag moving average.

Bill

 

[kut2k2]

Quote from intradaybill:

Quote from the first site:

"Almost Zero Lag Moving Average

To smooth it out further, one may apply it twice with smaller period for the second. But again, you cannot make the lag zero! "

There is no such animal as a zero-lag moving average.

Bill

True, but anything better than the (A)ZLMA is likely to cost some dough.

 

[joesan]

Moving average ? umm, maybe I should study them.

 

[robinxing]

the strategy fails becoz there r too many fasle break out

and whipsaw