The appropriateness of using Take Profit and Stop Loss in automated TS. - page 7

 

>> IlyaA

I've been promoting this approach to trading and the "logical stop" terminology for a long time now.

Avals correctly points out that there should be "other ways to exit" ... a normal system should detect a change before a large stop ... if not, then it is simply not a viable system ... i.e. a normal system will never trigger a large stop and then why put it at all ...

The market is constantly changing and stops should also constantly change according to the current situation, rather than being based on history and optimization ... based on past data ...

 
RIV писал(а) >>

>> IlyaA

I've been promoting this approach to trading and the "logical stop" terminology for a long time now.

Avals correctly points out that there should be "other ways to exit" ... a normal system should detect a change before a large stop ... if not, then it is simply not a viable system ... i.e. a normal system will never trigger a large stop and then why put it at all ...

The market is constantly changing and stops should also constantly change according to the current situation, instead of being calculated based on some history and optimization ... based on past data ...

Good time, gentlemen! If you look at the problem from an amateur's perspective it means that by opening different types of orders (buy-sell) you can fix profit or loss. If the system is managed correctly, we can accumulate profit, while closing is a matter of technique, we just close all necessary orders simultaneously. This, of course, has some pitfalls, but all this is also not a problem to calculate. The only thing that remains is to choose a brokerage company without a ban on lots! I would like to know pro's opinion on this question.

 

Hmmm...how is a lock better than a stop? Mathematically, the only difference is negative swaps, and the difference is in favour of the stop.

And to make it even clearer: takeprofits and stoplosses are also orders.

 
I've been doing some more modelling and I can tell you from 10 different trading systems. In none of them did stop/lock give a reliability advantage. All system performance deteriorates with the addition of a stop. Profitability curves spike (one or max 2 times) above the balance horizon without a stop. And just as quickly go into a lower profit zone. Even attempts to "fit" the stop to the story have failed. The curves are concave. And not once have I managed to see an upwardly convex balance curve from the stop. In general, going out on signals is clearly more efficient. People/people, I beg you to change my mind :) there must be a situation on history where the stop justified itself. I'm begging you to share it. Only if you can, without dogma, a purely concrete story... :)
 
IlyaA писал(а) >>
I've been doing some more modelling and I can tell you from 10 different trading systems. In none of them did stop/lock give a reliability advantage. All the performance of the systems deteriorates with the addition of a stop. Profitability curves spike (one or max 2 times) above the balance horizon without a stop. And just as quickly go into a lower profit zone. Even attempts to "fit" the stop to the story have failed. The curves are concave. And not once have I managed to see an upwardly convex balance curve from the stop. In general, going out on signals is clearly more efficient. People/people, I beg you to change my mind :) there must be a situation on history where the stop justified itself. I'm begging you to share it. Only if you can, without dogma, a purely concrete story... :)

Weird, maybe the systems are wrong?

 
paukas >> :

Weird, maybe the systems are wrong?


There is nothing wrong with the systems. An exit signal has been developed for each, which is guided by the cloze. Swinging at the candle makes the system worse. As it touches a close stop and if you look at the cloze the exit is better.
 
IlyaA писал(а) >>

The systems are fine. An exit signal has been developed for each of them which is guided by the cloze. Swinging at the candle makes the system worse. Because it touches a close stop and if you look at the cloze it comes out better.

You see, a stop is an order. If your system goes long, the stop is a sell and is placed from where the system will sell. Then you will benefit.

 
paukas >> :

You see, a stop is an order. If you have a system going long, then a stop is a sell and is placed from where the system will sell. Then it will be useful.


>> All right. Let's get out of the way. Examples ship out. :)
 
IlyaA писал(а) >>

>> Okay. Move to the side. >> Examples, ship it out. :)

Example. If trading out of the corridor, the stop is on the opposite side of the corridor.

 
paukas >> :

Example. If trading out of a corridor, the stop is on the opposite side of the corridor.


That's a profit and I'm talking about a stop. If we assume that the stop is outside the corridor, then we can exit by the signal of the indicator. Take any channel indicator, it will clearly show that the channel has been broken.
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