I have been a little busy lately, but I have had time to work on a new system. The chart shows what the system's potential could be. One thing that many people would struggle with is that the system runs on a monthly time frame. It should do nicely for my super fund.
I'll post some more test info when I get a chance - got to go.
stevo
4 comments:
Hi Stevo,
Interesting, I remember you saying you wanted to trade off monthly bars at one time.
I have had a quick visual of different and unusual time frames, say 2 weeks and things like that. Much of a muchness I think and should all tend to catch a little of the extra premium for stepping above the noise of most managed money time frames.
If you have a look at the monthlys on the XJO or similar then the higher highs and lower lows tend to me much cleaner imo, anyway something I haven't quantified but am looking into now I'm giving up the daytrading and looking at longer term stuff.
Cheers,
Andrew
Hi Stevo.
I've looked at monthly systems briefly last year or the year before and decided they were just too slow moving for me!
I think weekly hits the sweet spot between daily and monthly.
Just curious though; what's the average hold time like? 2 years? And how many trades a year are closed out? It'll be interesting to see the testing stats.
Nizar.
Thanks for the comments.
Average hold time is 211 days based on a TradeSim run I did last week, not quite double one of the weekly systems I am currently trading. Longer would be nicer, but not at the expense of performance. Winning trades do frequently exceed one year.
The main advantages I am looking for with a monthly system is a bigger window, 1 month, to place orders, and the potential for trading larger sums of money. This system is for a SMSF with 4 members.
I will post some stats when I get a chance.
It's interesting to see that many people struggle with the idea of trading a monthly time-frame, mainly because there is a chance that a stock will drop substantially and they will have to wait up to a month to get out.
To go from day trading to trading off monthly bars is quite a leap! I won't be encouraging people to trade a monthly time-frame, but it appeals to me.
stevo
Getting on an animation is a class idea
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