Dump it Here
- Thread starter Skate
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Well done @DaveDaGr8.
Every time I give others the answer, I then have to explain the answers a few times.
Skate.
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Thank you for your kind words @Skate - truly appreciated and looking forward to assist in any way that I can.
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By its bark.
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@Captain_Chaza, you raise a good point but "bark" was the correct answer.
The original joke about distinguishing dogs and trees based on their "bark" is quite clever by the way, playing on the double meaning of the word "bark".
However, when I throw that question out most failed to pick up on the wordplay initially and literally look for an answer rather than looking for a pun or trick answer. Flexible thinking is needed to fully appreciate humor, wordplay, and trading.
# Thinking helps build mental agility! (the point of the exercise)
Also a play on words
1. When wind passes through a tree it rustles its leaves. When wind passes through a dog you leave.
2. A tree drops its leaves. A dog leaves its droppings.
Skate.
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Have you and yes all of you ever thought about having an INTEREST in our Magnificent Monthly and Yearly competitions
IMHO I find the pressures of these Competitions is as Fundamental as Breathing in any Learning Experience
AND IT IS FREE!
Salute and Gods' speed
IMHO I find the pressures of these Competitions is as Fundamental as Breathing in any Learning Experience
AND IT IS FREE!
Salute and Gods' speed
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How can we harness volatility?
To harness volatility a balanced approach is required to limit the associated increased risks. Markets always display a degree of volatility, which I'm going to strive to capture. It's crucial to realise that while more volatility provides the potential for bigger profits, it also implies increased risk.
Identifying promising opportunities with increased volatility is harder than it sounds. I have no conviction in trading this style of strategy without a series of confirmations will, unfortunately, ensure that I'm a little late to the party.
My research has shown trading a volatility strategy requires strict discipline to capitalise on these opportunities while minimising potential increased risk is critical. Setting precise entry and exit points is all part of a disciplined approach. Using a "Take Profit Stop" is essential when trading volatility as profits can quickly disappear.
One of the primary benefits of trading volatility is that it provides traders with greater flexibility. Traders can find opportunities by focusing on volatility regardless of the general market condition.
At this stage, I'm sure volatility trading can earn solid returns while minimising the additional associated risks with a research-driven approach. Volatility trading might be a step too far for me but at least it's a change from my usual price-based techniques.
I understand that paper trading can be a challenging lengthy process, however, paper trading is a great way to test a strategy, without risking real money. Remember, paper trading is not about making money, but about learning and improving.
Paper trading starts tomorrow with 5 new positions and with the markets pointing lower adds a degree of difficulty of starting off on the right foot.
Skate.
To harness volatility a balanced approach is required to limit the associated increased risks. Markets always display a degree of volatility, which I'm going to strive to capture. It's crucial to realise that while more volatility provides the potential for bigger profits, it also implies increased risk.
Identifying promising opportunities with increased volatility is harder than it sounds. I have no conviction in trading this style of strategy without a series of confirmations will, unfortunately, ensure that I'm a little late to the party.
My research has shown trading a volatility strategy requires strict discipline to capitalise on these opportunities while minimising potential increased risk is critical. Setting precise entry and exit points is all part of a disciplined approach. Using a "Take Profit Stop" is essential when trading volatility as profits can quickly disappear.
One of the primary benefits of trading volatility is that it provides traders with greater flexibility. Traders can find opportunities by focusing on volatility regardless of the general market condition.
At this stage, I'm sure volatility trading can earn solid returns while minimising the additional associated risks with a research-driven approach. Volatility trading might be a step too far for me but at least it's a change from my usual price-based techniques.
I understand that paper trading can be a challenging lengthy process, however, paper trading is a great way to test a strategy, without risking real money. Remember, paper trading is not about making money, but about learning and improving.
Paper trading starts tomorrow with 5 new positions and with the markets pointing lower adds a degree of difficulty of starting off on the right foot.
Skate.
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GOOD LUCK! and Bon Voyage
I really mean it!
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No!
I think that you will take risks in Paper Trading that you would not do in Real Trading
Just an meanless observation on my part
As you know
I follow you closely and think you have got SOMETHING
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@Captain_Chaza, I understand your concern about paper trading not reflecting the risks I would take in real trading. My plan is to follow the trading signals from the Amibroker AFL systemically and without any overrides or deviations, whether paper trading or real trading. This will ensure my paper trading closely mirrors the experience and risks of real trading.
While paper trading has limitations in simulating real market conditions, by adhering strictly to the system's signals I intend to make the paper trading as realistic as possible. I appreciate you raising this point - it's a good reminder to implement robust risk management in my paper trading just as I would in live trading.
# My goal is to use paper trading to effectively test the strategy before putting real capital at risk.
While backtesting provides an important guide, real-world trading results can differ due to changing market conditions. To get a benchmark for expected returns, I'll share a five-year backtest. My strategy development aims for robust rules that account for various market environments. In live trading over the years, I have not experienced significant underperformance compared to my backtests.
Skate.
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@Captain_Chaza, that was a relief to hear. Developing a volatility trading strategy has been an exciting new endeavour for me. It's involved a long process of research and testing to arrive at a strategy I feel confident enough to paper trade. I just started paper trading this strategy on July 1, 2023. The extensive backtesting results are promising, but I know real-world trading brings new challenges.
As you noted, trading a strategy live is the true test. I'm eager to see how paper trading goes and learn from the experience. My goal is to refine the strategy into one that can deliver consistent returns in live trading. I'll be sure to share my ongoing learnings and results.
5 Year Backtest results
Skate.
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If you find as a beginner your hard won bucks have gone down the pan you have got a chance to win this race:
Now if you just can't stand putting in the effort and need to appear in person for a Bank Loan this will get you there real quick:
Now if you just can't stand putting in the effort and need to appear in person for a Bank Loan this will get you there real quick:
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Mr Skate,
So this is a new strategy for you. Is this replacing the other one?
I'm interested in this as I trade volatility, so to see your take or version of this will be good. I'll look forward to seeing how you implement the strategy and compare/contrast it to my own.
@Captain_Chaza must have placed me on block as I cannot see any of his comments, but can see your responses to him. LOL.
jog on
duc
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@ducati916, thanks for your interest in this new volatility-focused strategy I'm testing out. It's quite different from my usual approach of trading breakouts within a defined trend.
With this volatility strategy, the trade signals are generated independently from my typical "PercentageUp" filter, and the "StaleStop" incorporates only one time-based stop to do all the heavy lifting to exit a position early. I don't have as much control over entries and exits. So I'm not fully comfortable or confident in it yet.
That said, I believe it's important to experiment with new strategies, even if they end up being complementary rather than replacing my core breakout approach. I'm curious to see how this volatility method stacks up over time.
I'm also currently paper trading a couple of versions of the SAP strategy, along with another new idea.
Footnote
It's a shame you can't see @Captain_Chaza's commentary and involvement in this thread. As an experienced trader, he has provided helpful insights and feedback that have assisted in the discussion. While you can't see his side of the conversation, I wanted to acknowledge contributions from both of you, even if it appears one-sided. I appreciate you taking the time to share your thoughts just as much as I value @Captain_Chaza's unseen but helpful participation.
Skate.
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Skate, could you please post a summary list of all the systems you have developed and stopped trading, since starting this thread (must be close to 20 by now, including SAP??).
Looks like you are stuck in the beginners cycle (i.e. jump from one system to another, not being patient enough for the +expactancy to work with time).
Looks like you are stuck in the beginners cycle (i.e. jump from one system to another, not being patient enough for the +expactancy to work with time).
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@Trendnomics, I appreciate you taking the time to engage constructively in the "Dump it here" thread. As you've noted, reviving interest in systematic trend trading strategies can be beneficial to quite a few.
To clarify, I don't actually trade the systems discussed here
My goal is to transparently share trading ideas and backtests reports to generate discussion. I'm open to feedback on improving my testing methodology for new trading ideas in a polite manner. I aim simply to stimulate thoughtful dialogue by openly sharing some of my ideas and research.
Previously
You raise fair concerns about the potential downsides of complex systems, like overfitting. I agree simplicity is best when possible. However, rigorous out-of-sample testing across diverse markets can justify incorporating some complexity if it improves performance. I value your perspective and appreciate your constructive participation. My aim is to have an open thread for politely examining and discussing alternative views without pushing any one trading approach or methodology.
It's always beneficial
Explaining the reasoning behind the statements you make can help newcomers understand differing points of view better. Elaborating on your remarks makes the "thinking clearer" for those less familiar with the concepts you raised.
Through open and thoughtful discussion
I believe we can explore these topics in a way that benefits everyone. I'm always looking to improve the tone of the discourse within this thread and would welcome any suggestions you or others may have. As you note, I've shared many systems and ideas openly. My goal is education, without promoting any specific approach other than system trading using Amibroker software.
Search Feature
This forum has a great search feature, allowing previous discussions on almost any trading topic to be easily located. I aim to educate by transparently sharing my research, trading ideas, system backtests, and analysis. The forum's search feature is a valuable tool for newcomers to learn from the collective knowledge posted here by many knowledgeable members over the years.
In summary
I have shared a wide variety of trading systems and ideas in this thread since December 2018. I'm sure I would have posted well in excess of 20 different strategies. The strategies I've posted about can be found by searching the keyword "Strategy" along with "Skate", which returns nearly 2,000 posts.
Skate.
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