Please, there are no useless sharing in our forums. Knowledge is built upon sharing, let’s do it in a friendly spirit, like we are now used to, at PRC. Thank you.
@Brisvegas is right about the fact that the strategy should beat the index or the ETF which is already leveraged, and since this is a long only one.
The strategy’s concept is good, and like I said in a previous post, I like it. It’s a nice combination between mean reversion and trend following. At the end, to get an edge between good returns, low drawdown and acceptable risk, the money management and diversification is the key.
Definitly, Nicolas!
And yes its a very “long-term” mean reversion/trendfollowing as it is right now.
I think the clue here is to make good small trades within the positive momentum, that is found with this system. Its pretty clear to me that the good trades that this system takes, must be done a whole lot better and cleaner then what it is now. Right now its basicly just saying “The price has dropped and seems to be on the rise again, lets buy and hope to god this works”
What i want from this is “The price has dropped and seems to be on the rise again, thats the perfect condition for this great entry and exit we created” 😀 Hope that makes sense
If you believe in statistic, you can try to count false signals that appeared in the same price area within the last X periods and in the same row, or play with Fibonacci retracement of the current trade (if in profit), to know where are key levels… There are many ways to explore 🙂 The idea is to identify what is a pullback of the current trend or a new reversal, that’s where the strategy “fail” sometimes.
Thanks for reply and good ideas Nicolas!
I have though about just setting a 10-30 day pause on algo after a good trade, not sure how to code that tho.. Might have to do it manually but that would also suck… Trying to keep myself out of any system as much as i can hehe.
“The idea is to identify what is a pullback of the current trend or a new reversal, that’s where the strategy “fail” sometimes.” Definitly! When the big trends down continue to fall, this strategy will bite on every false signal all the way down 😛 That is definitly a major problem.
