BooYa!! I'm hyped up about Forex again :)) - page 2
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
tweaked too much and now it's gone all bonkers on me. ah well, at least the short positions percentage isn't too shabby...
no, it's way more simple. but wont get hyped up 'cause the proof is in the real pudding right? besides the graph is way too boxy.
no, it's way more simple. but wont get hyped up 'cause the proof is in the real pudding right? besides the graph is way too boxy.
It's also based on ~3000 trades occurring in the rather short time span of ~5 weeks. Not exactly amenable to a live trading environment.
yeah wont even go there. i guess the more conservative, ideal scenario would be a single digit drawdown % relative to a triple digit profit %. so boring though.
19730719 you're quite the programmer. I've seen examples of your coding style and I must say it's clean cut just like your charts. If your systems are not curve-fitted then you have one hell of a way with Indicators. Have you demo-tested some of these? If so, how did they perform? Giving the short period of time on those trades, shouldn't take too long to realize if you have something solid on your hands right?
just an enthusiast with a passion for automation and a healthy imagination. probably doesn't do any harm that i'm in the electrical/electronic trade. yes have done some forward testing. let's just say no nasty surprises yet. also doing some number crunching but unfortunately the optimization reports aren't very clean cut.
What would you recommend to help me from giving up too much floating profits? If I'm saying too much here, you can Pm me with any hints. Thank you.
I use MAE and MFE as my critical metrics for assessing the quality of market forecasting my strategy is performing to.
For example if your strategy is hitting its MFE before its MAE then the strategy is bad at price forecasting and market timing. A good entry strategy will have lower MAE than a strategy with high MAE (relative).
Likewise when seeking good exit strategies you look for the ones that have have as little excess MFE as possible.
(I define excess MFE as being the difference between MFE for the trade and the closing price...it is basically how much money you left on the table by holding onto the trade too long "past its peek")
And the MAE is telling you how badly (or well) your entry timing strategy is doing. Ideally your market prediction would perfectly time the bottom of a market swing such that your entry price is the MAE for the trade (by an amount equal to the spread).
If/when the MFE occurs before the MAE then basically your strategy has botched everything, timing and direction are wrong and backwards.
I use the following graphics to explain these principles to my clients. (note I have stripped the author info - even though it is me - from these because the NFA would consider this as advertising and I don't want to get into any of it)
I don't have a graphic depicting the obvious, but the ideal entry/exit strategy pairing is the one for which the MAE is the open price (less the spread) and the MFE is the close price.
(and of course all these graphs are depicting a long position, the same concepts apply to analyzing the predictive accuracy of short positions)