Pathfinder Trading System

Forums ProRealTime English forum ProOrder support Pathfinder Trading System

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  • #13565

    Hi guys,

    this topic is for all discussions related to the Pathfinder trading system strategies. The system based on four components that work perfectly together.

    • signalline – instrument trend line based on two smoothed averages (Wilder and Time Series)
    • breakout levels – previous daily, weekly and monthly high/lows in combination with fast and slow averages as filters because not every breakout is profitable
    • saisonal behavior – position size will be boost with a multiplier for each month depending on the historical seasonal behavior
    • smart money and position management – grid orders, maximal position size monitoring, superordinate stop loss/take profit, trailing stop and maximum holding periods are used mechanisms

     

    The Pathfinder breakout logic works well for many instruments with 24 hour quotes such as DAX, DOW, FTSE, Hang Seng, NIKKEI in 4 hours timeframe. All versions are optimized for an 10k Euro account.

    Pathfinder strategies offer a statistical advantage but are of course not a holy grail and there is no guarantee to make money with it. The systems are optimized for historical data and historical gains are not a guarantee to be successful in the future. I strictly recommend to adjust the position sizes to your personal account size and try first in demo mode. The results in life trading will differ from the backtest results. I also recommend to start in life trading with a small account size. Anyone can use the programs for free and at their own risk.

    Pathfinder is my private and fully transparent algorithmic trading project exclusively implemented for ProRealTime 10.3. The status is experimental and I don’t trade all the systems presented here. I would also like to thank all members who have helped to improve the system with their contributions.

    Please find below the last released Pathfinder trading system versions for suitable instruments.

    Dropbox Link: https://www.dropbox.com/sh/mkphx772gvp5a1f/AACk4hcg6GCIuSs4SWVv-hYma

    Best, Reiner

    18.07.2017 Release V7 containing error fixes, improvements and new features for DAX-V7 (#post-40798) and DOW-V7 (#post-40880)
    31.07.2017 Updated dropbox with new algos DAX-V7-2, DOW-V7-2 and HS-V7-2 (#post-41811)
    02.08.2017 Updated dropbox with new algos FTSE-V7 and Nikkei-V7 (#post-42223), ASX-V7 (#post-42249) and STXE-V7 (#post-42332)

     

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    #13568

    Hi Reiner, Great work on the code. Can I ask what variables you have been optimising in your backtests? I’d like to run this live but I wanted to run some IN/OUT testing first.

    6 users thanked author for this post.
    #13605

    Hi Cosmic1, here are the optimized variables that are important for your test. Also check these variables if you want to adjust Pathfinder to other instruments.

     

    2 users thanked author for this post.
    #13618

    Reiner

    it may be useful to avoid returning the same day (or candle) to me makes no sense out of the trade and return immediately after. it would be appropriate to wait a day. what do you think ?

    #13628

    Miguel, I saw it, Pathfinder re-entered in the DAX on the same day – from today’s perspective that’s probably not a good trade. I will try to test it.

    #13634

    Thanks Reiner, I presumed that was the case. That is a lot of variables so will have to cut it up in to chunks and run many tests. Will try it over the weekend and let you know what I find.

    #13641

    I have created a new version. Pathfinder V4 is now more applicable to other indices such as DOW or FTSE. Here are the changes:

    • reorganize the code a little bit to make things clearer
    • introduce maximal position size for long and short trades to avoid an excessive risk
    • separation of the stop loss for long and short trades
    • introduce monthly saisonal pattern management
    • adjust signal and filter logic for other indices such as FTSE or DOW
    • modify some trading parameter

    changes in detail for the DAX:

    • new: maxPositionSizeLong
    • new: maxPositionSizeShort
    • new: stoppLossShort
    • change: periodLongMA = 300 // 250
    • change: stopLossLong = 5 // 5.5
    • change: takeProfitLong = 2.75 // 2
    • change: maxCandlesWithProfit = 15 // 18
    • rename: c1, c2, c3 in f1, f2, f3
    • remove: c4 filter
    • remove: monthlyLow for short trades

    Here is the code for the DAX (backtest result is attached):

     

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    #13644

    Will take some time to look at this over the weekend but looks very impressive. I finished running some IN/OUT opp just now on V3 Jan 2009 – March 2014 and results were very similar on the forward test, infact slightly better so this gives very good confidence.  🙂

    1 user thanked author for this post.
    #13645

    The consideration of seasonal patterns have improved my trading results significantly. Especially for commodities they are very helpful. On the webpage http://www.equityclock.com you will find excellent information about this topic. I have created a first Pathfinder version for crude oil based on the historic backtest results of saisonal patterns  http://charts.equityclock.com/crude-oil-futures-cl-seasonal-chart. Unfortunately IG PRT has only a very limited data history and maybe someone with longer history is able to check the reliability of the results.

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    #13648

    End part matches yours at least… Choppy ride. I will take a look at the weekend further.

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    #13652

    Thanks Cosmic1, long trades are good, short trades are bad, next step is to sort out the weak short conditions, I asume that weekly high/low and daily high are not realy working with oil

    #13657

    perfect. Also this version will look. do you think it’s OK to Wallstreet and FTSE 100? after oil might be useful for a gold system. I hope that your great work is rewarded.

    Grazie.

    miguel

    #13658

    Miguel, FTSE and DOW is almost ready for V4, I will release it soon. Gold and silver are on my agenda as well. This weekend is sunny weather here in Frankfurt and my family have requested some outdoor activities, so my time is limited on this weekend 🙂

    2 users thanked author for this post.
    #13666

    y’re the best.  I Will send you My tradizional  christmas  sweets of puglia. . promised. good wekend.

    Miguel

    1 user thanked author for this post.
    avatar ALE
    #13714

    I adapted Pathfinder V4 on FTSE and DOW. Due every index has it’s own “heartbeat” minor adjustments were necessary. Please be aware that this is an optimized view to historic data. Please check the position size and the related drawdown and adjust it to your own risk.

    Pathfinder FTSE V4

     

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