If a trading strategy fails, why the opposite of the trading strategy also fail?? - page 2

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yogureee
64
yogureee  
Ning Liu:

Here I want to raise a topic "if a trading strategy fails, why the opposite of the trading strategy also fail??

I have some code to do trading, certainly most of them loss money. Just curious, I reverse all the trading direction buy/sell and SL/TP, the exact opposite of the trading strategy also fail.

Could anyone explain this interesting trading process?

It is a open-mind free discussing. Any ideas are welcome!

If that happens, it means when to open the position is not good.

Some of reasons for that may be:

The market is in a sideways, going sideways, SL is too small,

or resistance and support (for multi timeframes) are not taken into account.

Yohana Parmi
4260
Yohana Parmi  
Ning Liu:

Here I want to raise a topic "if a trading strategy fails, why the opposite of the trading strategy also fail??

I have some code to do trading, certainly most of them loss money. Just curious, I reverse all the trading direction buy/sell and SL/TP, the exact opposite of the trading strategy also fail.

Could anyone explain this interesting trading process?

It is a open-mind free discussing. Any ideas are welcome!

Ning Liu:

My understanding is that, if the failure of the strategy is due to the wrong trading direction, certainly we reverse the direction will improve the performance. However, if the failure i due to other factor, simply reversing the direction cannot help..

Hi Ning Liu,

Let's figure out this stage on chart pattern.


Your stop-loss would often be triggered on the stages above.
You need to figure it out EA can handle the risky patterns of price movement on its stage.

You really need master coder to complete the mission well.

Good luck,
have a nice weekend.

Tafadzwa Nyamwanza
293
Tafadzwa Nyamwanza  
Ning Liu:

Here I want to raise a topic "if a trading strategy fails, why the opposite of the trading strategy also fail??

I have some code to do trading, certainly most of them loss money. Just curious, I reverse all the trading direction buy/sell and SL/TP, the exact opposite of the trading strategy also fail.

Could anyone explain this interesting trading process?

It is a open-mind free discussing. Any ideas are welcome!

Really good question, the opposite should theoretically succeed 
Ning Liu
260
Ning Liu  
Yohana Parmi:

Hi Ning Liu,

Let's figure out this stage on chart pattern.


Your stop-loss would often be triggered on the stages above.
You need to figure it out EA can handle the risky patterns of price movement on its stage.

You really need master coder to complete the mission well.

Good luck,
have a nice weekend.

Not realy, this refer to side movement. If i use large SL and small TP, either way will end with profit trade.
Yohana Parmi
4260
Yohana Parmi  
Ning Liu:
Not realy, this refer to side movement. If i use large SL and small TP, either way will end with profit trade.
Ning Liu:

Here I want to raise a topic "if a trading strategy fails, why the opposite of the trading strategy also fail??
I have some code to do trading, certainly most of them loss money.
Just curious, I reverse all the trading direction buy/sell and SL/TP, the exact opposite of the trading strategy also fail.

Could anyone explain this interesting trading process?

You said that and you can do what you want :)

Discussion for trading strategy will create more than millions words.
So, you can use anything that suit for you.

Good luck

Amir Yacoby
1191
Amir Yacoby  
Ning Liu:

Here I want to raise a topic "if a trading strategy fails, why the opposite of the trading strategy also fail??

I have some code to do trading, certainly most of them loss money. Just curious, I reverse all the trading direction buy/sell and SL/TP, the exact opposite of the trading strategy also fail.

Could anyone explain this interesting trading process?

It is a open-mind free discussing. Any ideas are welcome!

The reason is that a trade is comprised from direction plus take profit and stop loss. If you have a statistical random strategy (50/50) and you set the tp/sl so as the tp is two times closer then the sl, then you will get many small wins but half of that number losses but each loss is twice as large then a win.
Reversing the direction, reverses also the tp/sl, but as long as the statistical expectation is still 50 % you will still lose, this time many small losses agains half wins but bigger ones. 
If you have statistical edge from the first place, then you dont need to reverse.

In other words, when you failed before the reversing, you had no statistical edge when combined the trade direction plus the tp plus the sl. Reversing the three of them, keeps the situation the same, because it reverses all 3. If you had 60 pct wins, now you will have 40 percent wins, but with opposite tp sl relation and because you were not profiting when you had 60 percent wins (due to bad tp/sl meaning tp was closer then sl) now you will also lose because now the sl will be closer and hit more times.
Marcel Igboanugo
204
Marcel Igboanugo  
Amir Yacoby:
The reason is that a trade is comprised from direction plus take profit and stop loss. If you have a statistical random strategy (50/50) and you set the tp/sl so as the tp is two times closer then the sl, then you will get many small wins but half of that number losses but each loss is twice as large then a win.
Reversing the direction, reverses also the tp/sl, but as long as the statistical expectation is still 50 % you will still lose, this time many small losses agains half wins but bigger ones. 
If you have statistical edge from the first place, then you dont need to reverse.

In other words, when you failed before the reversing, you had no statistical edge when combined the trade direction plus the tp plus the sl. Reversing the three of them, keeps the situation the same, because it reverses all 3. If you had 60 pct wins, now you will have 40 percent wins, but with opposite tp sl relation and because you were not profiting when you had 60 percent wins (due to bad tp/sl meaning tp was closer then sl) now you will also lose because now the sl will be closer and hit more times.

You have given answer to the question, I believe.

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