Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Thanks for providing me feedback several times. In no way am I ignoring the comments being made here. I like to learn from experience as its the quickest way!
You previously mentioned that you understand the workings of unirenko and you are able to back test successfully. Could you please shed some light on that or give me a link to a post if you've previously mentioned it. Also, I read on ninjatrader support forums to use 2 chart DataSeries/time frames. Renko to spot a trade and the tick series for execution of trades. If I were to do that, would the "problem" be resolved or would it still persist.
And I shall definitely forward test my strategy and see if it's consistent with the historical trades or not. Would the result differ if Market Replay is used?
Why the need for more information? Judging from the screenshot, this is a not a good strategy because:
* It's only tested on two months of data,
* There is no commission factored in,
* There are no short trades so this strategy will likely suffer when markets suffer,
* It's backtested on only one instrument,
* It's trading a very volatile instrument (GC),
* The average time in market is a mere 2 minutes with an average trade of just $31.52: trading costs (commission + slippage) are very likely to make this a losing strategy.
* The largest losing trade is just 80 dollar, which is much lower than one would see in reality (also: GC is not always that liquid compared to, say, ES).
If this strategy is tested on a much longer time period, we'd likely see much worse results. Keep on trying though.
Hey,
I have addressed all those points in my answers to people.
-I have also tested it on 1 year ES with similar results.
-Commission doesn't make an impact on this one. I have factored it in now though.
-It's a scalping strategy, hence the short time in market.
-I'm still developing the strategy, I only programmed my settings to go long.
-The largest losing trade is my stop loss order.
-My trading cost =$4.80/round trip. No slippage with limit orders.
Forgive my scepticism, I'm not trying to demotivate you, but how can commission not impact a scalping strategy? (Assuming you're not acting as a liquidity provider)
One of my points is that you can not always decide how long you are in the market. What if the market experiences a flash crash? (not unlikely with ES or GC, since that has already happened before). Will your largest losing trade still be just 80 dollar or will your stop-limit order not be executed?
In my view, limit orders still have slippage, since they have the chance of not getting executed (= also trading costs).
In my 2nd attachment. ES net profit = $12925. Commission = $4.80*314 Trades = 1507. Net = $11418.
My trading plan is to scalp. Trade 1-2 times a day. Make a point in GC or 2 points in ES.
I said the commission is irrelevant because I am not trading at a high frequency. I am trading 1-2 times a day and averaging 1-2 points.
Regarding your statement about a flash crash. There isn't really a way to prepare for an anomaly like that imo.
If you do not like my strategy based on my trading methodology, that's a different topic.
I'm trying to figure out a way around it. As MWinfery mentioned, he was successful with his attempts.
And regarding your statement previously. I do not consider this a waste of my time. It is a part of my learning curve. If I fail, that would be a better lesson than winning right away. I want to find answers to questions instead of giving up on them and just taking you up on leaving it altogether. I have joined the forum to be part of community where I can share my thoughts and get help, help others and learn new things with people. So please don't be harsh and call my learning a waste of my time.
I did not upload the screen shot and open myself to criticism to boast about my strategy. I wanted people to comment on my technique and help me figure out if I can make it better, or point out my mistakes. I am getting plenty of constructive criticism and ideas. I've gained more information about my strategy by discussing it here than I would have by ogling over the back test results.
I was not talking about preparing for a flash crash if you read what I said; I was saying that you should take the backtested value for the largest loser with a grain of salt, since in reality this value will probably be a lot higher.
You can, for example, check out Kevin's thread(s) to see how hard it can be to have a strategy perform exactly as in the backtest. And that is with 20+ years of experience, if I recall correctly.
I'm sorry, I thought this topic was about you asking our opinions about your backtest results. I did not knew you were not open to some scepticism and would get defensive about it.