General Strategy Improvements

Automatic Amount Calculation While in Italy, I experienced a series of loss trades that, overall, were larger than expected. As the stop amount moves around for every trade, sometimes it can be large and sometimes smaller. This means using a fixed amount exposed me to greater risk occasionally, and unfortunately I lost. I have now […]

Long trailing stops

Today I made an interesting discovery. While playing around with trailing stops, I noticed that the Panic and Retracement strategy yielded ridiculous profit if a large trailing stop was put on. It appears that the strong retracement picked up by the strategy marks the start of a long trend, and having a rather large stop […]

Research continues

The past few days I’ve been doing more reading and research for interesting techniques and strategy ideas. 1)    One important thing I’ve learned is that risk dictates either the position size or stop loss. So if the acceptable loss/risk amount chosen relative to the account balance of $7000 is 1%, that’s $70. –       If I […]

Limiting losses during spikes – must use Stop Orders

Something I noticed today while investigating loss trades in my backtesting results. Suppose our strategy will automatically close out the position if on some condition, say either we have lost a certain amount of pips, or some lines cross signaling an exit. However, the strategies logic is only executed per update of the instrument. Let’s […]

Stop Loss / Take Profit

Today I did some optimizations on Stop loss and Take Profit with the Omar_MACD strat. Obviously the trending strategy will close out its own positions when the market turns against it, so strictly speaking a stop loss may not be necessary. However, in the case of flash crashes or perhaps network problems, I would feel […]