Hi guys,

I have been thinking about further improvements and want to share two ideas to make the system better.

One part of position and money management of Pathfinder is Trailing Stop protection. In a perfect trade the system surf on a trend increase successively the limit and is stopped out at the end of the trend. Unfortunately this is hindered by another part of Pathfinder’s money management – the maximum holding period check.  The idea is to extend the holding period when the trailing mechanism is activated.

// manage long positions
IF LONGONMARKET THEN
// first move (breakeven)
IF newSL = 0 AND close - tradeprice(1) >= trailingStartLongInPoints * pipsize THEN
newSL = tradeprice(1) + trailingStepLongInPoints * pipsize
maxCandlesLongWithProfit = maxCandlesLongWithTrailProfit // new: extend the holding period
stopLoss = 0  // new: in % set superordinate stop to breakeven
takeProfit = 10 // new: in % give Pathfinder more room for further gains
ENDIF
// next moves
IF newSL > 0 AND close - newSL >= trailingStepLongInPoints * pipsize THEN
newSL = newSL + trailingStepLongInPoints * pipsize
ENDIF
ENDIF

Pathfinder uses historic statistical behavior to boost the performance. The backtest report shows that the system makes money mainly on the long side. To further expand this point I changed the saisonal pattern and boost only the long trades.

I also reduce the trading window from 9-21 CET to make it clearer that the system only trades the H4 candles at 9, 13, 17 and 21 CET.

V6B1 is 90% better then V5 with the same drawdown but is still beta.

Please find attached the backtest and code of Pathfinder DAX H4 V6B1 (start from August 2010, first date with 24 hours quotes).

best, Reiner