Hi
I am struggling quite a lot to develop a strategy for the SAF40 that trades a few times a day. I only want to be in the market for a few hours a day at most. I like to take small profits for now as I dont have lots of capital to risk. I have build many strategies that looked great when back tested. I then ran a few of them with some success. One of them ate 60% of my capital and then i stopped them to re-asses them. For some or other reason the back test does not look that great anymore. I dont know why it changed but if it looked the way it does now i would never have started them. I know I should test them in a demo account rather than live, but I am eager to trade.
Are there any short term strategies for the SAF40 already tested, if not what would be the indicator to use to develop one. I tried all the popular ones. I even bought a strategy from a company and tried to code it in, but without any success.
LeoParticipant
Veteran
Hi,
I think we all try to do something like you. Some tips what I painfully learn during the process:
– use mini contracts for testing your algorithm live.
– set your maximum lost per trade
– If thinks are very bad, use the function “quit” inside the coding for deactivate the system
– if you use multiple variables and combination, then your program is prone to be overoptimize
-if you lost get the most of it and keep programming other scenarios for improve your favorite system
And do not give up. This is what keep me going on: if we make one system , at least one system! than win X euro per week then you can use it in different markets and time frames then you have X€ times (number of markets) times (number of time frames) …mmmmm yummi yumi!
Hi Leo
I think this is probably my problem. I am trying to make the system so save that at some point it does not work anymore or trades only once a month. Why the back testing looks different now than it did a week ago is still very strange.
I quiet enjoy building these systems and testing them, so will keep on going. I am just stuck at the moment. Not sure how to approach and new system as it feels like I tried all the combinations of technical indicators. Oh and a lack of coding knowledge also affects this.
if you use multiple variables and combination, then your program is prone to be overoptimize –
Why the back testing looks different now than it did a week ago is still very strange.
Use tick by tick mode (always) and set correctly the spread while backtesting your strategies.
Hi Louwrens
Don’t be afraid to look at the general Market Structure surrounding the trade entry when it executes.
By that I mean if a trade has opened Long and the bars around the entry and higher timeframe bars are screaming Short then stop the Strategy, check / improve code, run in Demo and live to fight another day??
If you can’t read Market Structure then use the info on the link below.
Cheers
GraHal
https://www.investing.com/technical/indices-technical-summary
Thanks everyone for the comments and advise. It highly appreciated. I am afraid I am hooked on this and it will probably cost me some money.. Hopefully not for too long. 🙂
