# Generating Trading Ideas



## Roller_1 (4 August 2017)

As a systematic trader i am constantly on the look out for new ideas to test/investigate.

I was wondering how other members go about generating ideas for backtesting or trading. Any blogs or websites that you frequently visit? Podcasts that you listen too?  

I listen to the "Chat with traders" and "Better systems trader" podcasts.

All ideas welcome!


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## Gringotts Bank (4 August 2017)

Plot troughs on a chart.  Cover up the bars to the right of the troughs.  Stare at the visible bars (leading up to the trough) and see if anything is noticeable and repeating.


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## Roller_1 (4 August 2017)

Gringotts Bank said:


> Plot troughs on a chart.  Cover up the bars to the right of the troughs.  Stare at the visible bars (leading up to the trough) and see if anything is noticeable and repeating.



Not sure i'm on the correct wave length here.. Do you have a example?


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## Boggo (4 August 2017)

Roller_1 said:


> Not sure i'm on the correct wave length here.. Do you have a example?




Have a look at what charts tech/a and peter2 put up, and read any associated commentary.

A lot of very useful info on there Roller.


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## Trembling Hand (4 August 2017)

Roller_1 said:


> Not sure i'm on the correct wave length here.. Do you have a example?



I wouldn't be concerned. Analog chart analysis is tapped out surely. If it ever was a good source!

Trouble with creating new ideas in your own head is that it just more of the same. If you want new ideas try hanging with a new crowd. Programmers, option traders, different time frame system designers.

Also research papers. Most are completely crap but they can be idea sparks for something practical


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## rb250660 (4 August 2017)

Books, magazines, research papers, blogs, YouTube, podcasts, software vendor support websites, etc.

If I find something that is mildly interesting I'll replicate it usually to find it doesn't work that well. From there I'll remove/add/tweak or end up on a completely different tangent. Sometimes just checking out what others do sparks something in my mind. I've recently completely changed how I test for edge and wonder how many good trading models I've thrown away in the past 

I'd estimate that for every 100 ideas I try 99 just don't cut it for me.


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## Gringotts Bank (4 August 2017)

Roller_1 said:


> Not sure i'm on the correct wave length here.. Do you have a example?




Analyze the bars in the grey boxes. How are they signalling a turning point, if at all?  Can this be exploited in future?


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## CanOz (4 August 2017)

Big drops....breakaway gaps to the downside. Dips getting bought.


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## Roller_1 (7 August 2017)

Trembling Hand said:


> I wouldn't be concerned. Analog chart analysis is tapped out surely. If it ever was a good source!
> 
> Trouble with creating new ideas in your own head is that it just more of the same. If you want new ideas try hanging with a new crowd. Programmers, option traders, different time frame system designers.
> 
> Also research papers. Most are completely crap but they can be idea sparks for something practical




That's exactly right, your own ideas usually have traits of your old ones. I'll keep digging through the net too see what i can find


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## Roller_1 (7 August 2017)

rb250660 said:


> Books, magazines, research papers, blogs, YouTube, podcasts, software vendor support websites, etc.
> 
> If I find something that is mildly interesting I'll replicate it usually to find it doesn't work that well. From there I'll remove/add/tweak or end up on a completely different tangent. Sometimes just checking out what others do sparks something in my mind. I've recently completely changed how I test for edge and wonder how many good trading models I've thrown away in the past
> 
> I'd estimate that for every 100 ideas I try 99 just don't cut it for me.




I am doing much of the same really, adding your own tweaks into other peoples ideas can bring some interesting results!


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## tech/a (7 August 2017)

Trembling Hand said:


> I wouldn't be concerned. *Analog chart analysis is tapped out surely*. If it ever was a good source!
> 
> Trouble with creating new ideas in your own head is that it just more of the same. If you want new ideas try hanging with a new crowd. Programmers, option traders, different time frame system designers.
> 
> Also research papers. Most are completely crap but they can be idea sparks for something practical




I don't know about that.

Once you understand risk trading is still pretty easy.
If your trading long then understand potential long or short positions and get on it.
If wrong get off it---if right stay on it.

Takes a long while to get to that point and there are many many ways of
getting on a potential trade.
But for me at least the old ways still work well enough.


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## Trembling Hand (7 August 2017)

tech/a said:


> I don't know about that.



Tech read the opening post then answer in relation to that..... when was the last time you had a coded system that worked?


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## tech/a (7 August 2017)

Trembling Hand said:


> Tech read the opening post then answer in relation to that..... when was the last time you had a coded system that worked?




Worked---meaning traded for a few years after testing---none
Worked meaning designed and tested but not traded ---- a few
(Well more than a few).
Far more that don't come up to the criteria.
Why haven't I traded them--all part of a venture I'm involved in.

So I still trade discretionarily.

But in direct response to the question.
I have found that the old ideas (of Mine) can be designed
into profitable systems --- on paper at least.
Mind you the criteria I (They) now use is way beyond that used years ago.


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## Trembling Hand (7 August 2017)

tech/a said:


> Mind you the criteria I (They) now use is way beyond that used years ago.



So then you have moved on from the old "Analog chart analysis"? Wouldn't a description of that process be more relevant to the OP?


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## tech/a (7 August 2017)

No not at all 
The criteria used to define a systems usefulness
And the way in which it is tested particularly with the use of Python 
Is way beyond that which I used with Metastock and Tradesim years ago.

They can do things with data sets I could not have comprehended then.
Most of it now is well beyond me.
But in time I'm sure all of those interested will be able to use the most up
To date data analysis available. There are people who will make it available in a way most of us can use.
We won't have to be python nerds---they are.
They will do the work and templates we can only dream of.
Bringing together the works of many in the field who's work is hard to compile and implement.

All this takes time.


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