Question about developing a strategy

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  • 10/05/2020 at 1:39 PM #146466 quote
    Mattias
    Participant
    Senior

    So bear with me, I’m quite new in algo trading.

    I have developed some rather simple strategies. One of them was in 3 minute timeframe and I looked in the equity curve that during a certain period it worked good. Then I searched for patterns that occurred during this period in higher timeframes, like certain values in indicators etc, and added those as conditions to the strategy.

    My question is if this approach generally is totally useless, if it’s over-optimizing in a nutshell? The strategy now is 35-3 (WR 92.1%), but only 7.5% in the market (I can only backtest to Dec-19).

    Even if this is fun to do, I have a feeling it’s not something that will work in real trading. Any thoughts?

     

    Thanks!

    10/05/2020 at 3:18 PM #146477 quote
    GraHal
    Participant
    Master

    Easiest way is to do what I just wrote on another Topic

    Zilliq Challenge : Give me a Donkey Indicator to transform in a RaceHorse 😉

    Or just set your Algo running on Forward Test on your Demo Platform and then start to develop another Algo … while enjoying seeing your 1st Algo taking trades! 🙂

    Mattias thanked this post
    10/05/2020 at 10:36 PM #146519 quote
    Mattias
    Participant
    Senior

    Thanks for your reply!

    I haven’t learned about Walk Forward-test yet. I tried to do it now but it must be something wrong, it’s now 50-4 in wins/losses.., and I really don’t know how to interpret the test results. So I’ll learn more about this, and come back and perhaps ask more questions when I have more knowledge.

    Thanks again!

    10/06/2020 at 9:56 AM #146549 quote
    GraHal
    Participant
    Master

    In the meantime you could test on Forward Test (not Walk Forward Test) using your Demo Platform … as I suggested above.

    Do you have your Demo Platform enabled?

    Mattias thanked this post
    10/06/2020 at 12:41 PM #146567 quote
    Mattias
    Participant
    Senior

    Yes, I am mostly using the Demo platform. Sorry for my incompetence, but what is forward test? Do you mean starting the strategy as real time automatic trading?

    Thanks!

    10/06/2020 at 1:13 PM #146574 quote
    GraHal
    Participant
    Master

    Yes start as real time / live AutoTrading … this is called Forward Testing.

    But on Demo for at least 50 to 100 trades  … so you don’t lose real money.

    Mattias thanked this post
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Question about developing a strategy


General Trading: Market Analysis & Manual Trading

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Mattias @mattias Participant
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This topic contains 5 replies,
has 2 voices, and was last updated by GraHal
5 years, 5 months ago.

Topic Details
Forum: General Trading: Market Analysis & Manual Trading
Language: English
Started: 10/05/2020
Status: Active
Attachments: No files
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