Martingale-Like Systems
profit faktor of 2.3 is a bit low for strategy tester, assuming that on forward trading the results might be different due variable/larger spread.. i can recommend to use the spread modification tool and test with a "higher than normal" spread. Also relative drawdown might be high, that depends on your "confortable zone"
regarding the betting strategies you already know my point of view.
profit faktor of 2.3 is a bit low for strategy tester, assuming that on forward trading the results might be different due variable/larger spread.. i can recommend to use the spread modification tool and test with a "higher than normal" spread. Also relative drawdown might be high, that depends on your "confortable zone"
regarding the betting strategies you already know my point of view.
As always great recommendations. My broker uses fixed-spreads, tho I don't use a spread tracker, I cannot remember a time when the spread ever changed. However, they have the nasty habit of freezing the terminal during important news times every now and so often. So my biggest worry is slippage, I can use pending orders for the grids (obviously). That may not be a fool-proof solutions tho. I've been thinking about going with their ECN, how would the spread modification tool help? Do I just give it a high spread like 10pips and see if it can over come? What profit factor would you recommend then?
From my experience i can say, that slippage is not a big problem for counter trend system since the overall traders are still trendfollowing. i have seen requotes/slippage a lot more with momentum trades.
Regarding profit faktor, my current system showed a profit faktor of 7.63 in tester in in forward trading 4.54.
I am currently not sure how to analyze not straight betting trading systems, i am sure 1005phillip knows something more in this issue. i am not good in maths. Unfotutnatly, because i was following his discussion about the analyzing but i have not yet been able to calculate this myself :(
Same here man :( My personal feeling is that 1005phillip is gonna trash this approach. Ha!
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Do you guys really think there's no place for Martingale-Like systems in Trading?
I've just created a Counter-Trend, Limited-Grid, Slow-Ramping Progressive, No-Stop-Loss System. The only optimization-like thing I've done to it thus far is Filtering Over-Bought/Sold with Macd Levels. It passed my 10y back-test with profit-factor of 2.30, Maximum-Drawdown=20 and Relative-Drawdown=60 on one of the best test. It would also hedge as the buy logic and sell logic are independent.
This is a little scary for me because this type of system flies in the face of everything I believe in thus far. No-Stoploss/Grid/Progression. I'm just wondering if many of you guys use similar strategies. And if you don't, is there any performance data that would change your mind about such systems?