Australian (ASX) Stock Market Forum

Dump it Here

Jump to new
Action Strategy Logo.jpg
GTFO sad face.jpg

The GTFO Filter
Using this type of filter ensures your portfolio is fully in or fully out. The bad news is that yesterday's massive move activated the "Action Strategy" GTFO filter. As a result, the "Action Strategy" has to be totally liquidated. Liquidating a strategy is hard to stomach particularly when the strategy ends the week on a positive note.

Skate.
 
G'day Skate,
Completely independent of your GTFO trigger, I had started liquidation of my 2 portfolios on Friday.
I was kicking myself for missing standard fundamentals checks earlier last week.
Portfolios were up ~50% with P1 started 23/6/20 and P2 started 22/8/20 with 50k in each, average of 20 positions at 2.5k each.
The strategies were hybrid systematic discretionary based on TA & FA and chaos theory with a few other unmentionable quirks. (A stropped and honed edge...)
My exercise has highlighted a few weak areas of my strategies and my exits definitely need work. Am satisfied with my entry strategies and timing of overall.
Both portfolios are now liquidated with the exception of 2 stocks in each. I consider them to be low risk overall and are close to doing their thing.
Trading without emotions has been the key to my consistency.
I would like to thank you Skate and @peter2 for your "guidance" in the realms of theory knowledge, more importantly, the application of it.
Much obliged gentlemen. :xyxthumbs
Cheers
 
frugal.rock said:
My exercise has highlighted a few weak areas of my strategies and my exits definitely need work
Click to expand...

@frugal.rock sharing information is how we learn & sometimes putting your thoughts on paper helps crystalise your thinking, well done.

The Action Strategy exercise
Actioning the buy & sell signals blindly is the takeaway if you traded along with the "Action Strategy". All in all, it was a worthy exercise. Even when we think we know better it's important to remember to follow your trading plan to the letter. Sometimes following your trading plan, strategy or system doesn't always pay off but that's not the point, the point is that we need consistency of our actions. Override your plan or system once & you will do it again & again. A sure-fire recipe for disaster.

The next project
@Bazzi the "Action Strategy" was a great project & as far as I'm concerned it's a handy trading strategy, now parked. I'm eager to start another project with some skin in the game for others to follow along. It can be educational to have a glimpse at how others trade systematically.

$100k Portfolio
When others post backtests reports I've noticed the portfolio size of $100k is often used, so that will be the trading amount of my next live trading endeavour. All I have to do is decide on a strategy to trade.

Trade options - I have two options on how I can achieve this
(1) Trade a strategy that has been previously parked (laying dormant) waiting for its turn to have a go. These dormant strategies have all passed the requirements to be an active trading system having already completed their paper trading stage of development. “OR”
(2) I can trade one of my strategies that’s currently still in the paper trading stage. I'm leaning this way as uncertainty brings excitement. I’m not saying the “excitement of gambling” but the excitement of "not knowing" how the strategy will perform in the heat of battle.

The strategy I decide to trade will not be a dog
I can take comfort knowing if one of my systems has made it to “paper trading” phase it's already proven to have legs. Deciding on which one of my strategies to use will be my next decision.

Skate.
 
Skate said:
@frugal.rock sharing information is how we learn & sometimes putting your thoughts on paper helps crystalise your thinking, well done.

The Action Strategy exercise
Actioning the buy & sell signals blindly is the takeaway if you traded along with the "Action Strategy". All in all, it was a worthy exercise. Even when we think we know better it's important to remember to follow your trading plan to the letter. Sometimes following your trading plan, strategy or system doesn't always pay off but that's not the point, the point is that we need consistency of our actions. Override your plan or system once & you will do it again & again. A sure-fire recipe for disaster.

The next project
@Bazzi the "Action Strategy" was a great project & as far as I'm concerned it's a handy trading strategy, now parked. I'm eager to start another project with some skin in the game for others to follow along. It can be educational to have a glimpse at how others trade systematically.

$100k Portfolio
When others post backtests reports I've noticed the portfolio size of $100k is often used, so that will be the trading amount of my next live trading endeavour. All I have to do is decide on a strategy to trade.

Trade options - I have two options on how I can achieve this
(1) Trade a strategy that has been previously parked (laying dormant) waiting for its turn to have a go. These dormant strategies have all passed the requirements to be an active trading system having already completed their paper trading stage of development. “OR”
(2) I can trade one of my strategies that’s currently still in the paper trading stage. I'm leaning this way as uncertainty brings excitement. I’m not saying the “excitement of gambling” but the excitement of "not knowing" how the strategy will perform in the heat of battle.

The strategy I decide to trade will not be a dog
I can take comfort knowing if one of my systems has made it to “paper trading” phase it's already proven to have legs. Deciding on which one of my strategies to use will be my next decision.

Skate.
Click to expand...
@Skate how about you trade the happy cat strategy that you have been paper trading a few weeks ago, the dull cat not the shiny cat as it freaks me out as well. It’s only a suggestion as I’ll be happy to follow anything you decide to trade
 
Ante said:
@Skate how about you trade the happy cat strategy that you have been paper trading a few weeks ago, the dull cat not the shiny cat as it freaks me out as well. It’s only a suggestion as I’ll be happy to follow anything you decide to trade
Click to expand...

@Ante ok, that's a good suggestion. Sometimes the first idea turns out to be the best.

Done & dusted
I'll trade the "HappyCat Strategy v1". The "HappyCat v1" was the dull HappyCat whereas "HappyCat v2" was the shinny one. I can't remember but someone else remarked that they didn't like or trust the "shiny" HappyCat.
Newt said:
I'm just not sure about Mr Happycat 2 - his gold skin is a bit too flashy, and there's something about his pose that makes him look like he's hiding something? V1 however looks much more trustworthy :) :cool:
Click to expand...
@Newt I know what they mean as @frugal.rock new avatar freaks me out.

Skate.
 
Ha, you "steely eyed hard nosed system traders" make decisions about your trading systems just like discretionary traders. We're all influenced by psychological biases, "feelings", sentiment, emotions, fear and greed.

I'm not having a dig at anyone, just a jocular moment.

IMHO the Action Strategy was performing nicely. I'm more concerned by the poor performance of the Daily Vix Strategy myself. Glad it's only paper trading. If you want to see what I mean, take out the PBH trade from the batch of 29 trades.
 
And before everyone forgets, many thanks to Mr Skate.
I followed and got 5k profit.nothing to laugh at when job is gone and we have to rely on investment
There were implementation differences ,some mistakes on my part but overall results did match and i have a good benchmark to compare my own systems
Thanks again
 
peter2 said:
Ha, you "steely eyed hard nosed system traders" make decisions about your trading systems just like discretionary traders. We're all influenced by psychological biases, "feelings", sentiment, emotions, fear and greed.

I'm not having a dig at anyone, just a jocular moment.

IMHO the Action Strategy was performing nicely. I'm more concerned by the poor performance of the Daily Vix Strategy myself. Glad it's only paper trading. If you want to see what I mean, take out the PBH trade from the batch of 29 trades.
Click to expand...

The Daily VIX would be my choice. That would really sort the men from the boys. That system lives up to its name.

jog on
duc
 
qldfrog said:
And before everyone forgets, many thanks to Mr Skate.
I followed and got 5k profit.nothing to laugh at when job is gone and we have to rely on investment
There were implementation differences ,some mistakes on my part but overall results did match and i have a good benchmark to compare my own systems
Thanks again
Click to expand...

It was the best hands on training I've had for a long time and best part was that I got paid handsomely to participate.

Thanks again Skate your contribution is much appreciated.
 
But i think it is a good time to end that Action strategy, and move to a different experience.
By many aspects, action was a smooth ride, very good return, not many heart attacks on the way
 

Similar threads

Garpal Gumnut
Very nice Rain here today
2 3
Replies
42
Views
2K
SirRumpole
SirRumpole
tech/a
  • Poll
Financial Independence (Home Ownership, Super, Long Retirement) not possible for wage earners: What do we need and how do we get it?
8 9 10
Replies
191
Views
15K
divs4ever
divs4ever
ducati916
November DDD
2
Replies
28
Views
2K
divs4ever
divs4ever
basilio
Ozempic: Magic Pill or Devils Bargain?
Replies
10
Views
1K
sptrawler
sptrawler
sptrawler
Competency and trying to maintain standards
2
Replies
27
Views
3K
sptrawler
sptrawler
Top