How to trade Linear Regression: with Strategy Settings!

Рет қаралды 43,943

Күн бұрын

Linear Regression is traded with billions of dollars in the hedge fund industry. Watch to learn this simple trend following concept using linear regression.
Use Monte Carlo Simulation in Trading: • Monte Carlo Simulation...
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Content Time Stamp:
-------------------
00:00 Linear Regression definition and data example
03:19 Linear Regression on a Chart
05:11 Visualizing Linear Regression Angle
06:58 Building a model using Algo Wizard in StrategyQuant X
08:00 Typical trend following system results
09:01 Adding a twist to the model
09:56 Multiple instruments in Portfolio Maestro in Tradestation
10:52 Conclusions
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If you're still reading this, you rock! thank you ❤️ algorithmic trading

Пікірлер: 71

@StatOasis 2 жыл бұрын

Use Monte Carlo Simulation in Trading: kzfaq.info/get/bejne/Zs2fqrB_t8mdpWw.html

@uiop5898 2 жыл бұрын

May I say that I love your videos. Everything is perfect. Your experimental scientific approach to trading, the quality of your video skills, your humor and your generosity to share your knowledge. Respect. 🙏🙏🙏

@StatOasis 2 жыл бұрын

Wow, thank you!

@jimmccarthy6004 Жыл бұрын

Very well done! Finally, somebody that has some clue of statistical trading, system development, money management, minimizing drawdowns, discipline trading, I'm just getting back into trading after being out of it for many years. Trade station has come a long way! It's such a coincidence because I am currently coding a linear regression system in trade station

@StatOasis Жыл бұрын

Welcome back

@nussbaumerloris 2 жыл бұрын

Amazing video as usual, thanks for the effort!

@StatOasis 2 жыл бұрын

Glad you enjoyed it!

@flybird730 Жыл бұрын

Another great video Ali. Thank you

@StatOasis Жыл бұрын

My pleasure!

@LucrativeLeroy Жыл бұрын

Now I understand why I love trading these channels.

@StatOasis Жыл бұрын

love to spread the knowledge ☺

@Yewbzee 2 жыл бұрын

Cheers Ali, thanks for sharing.

@StatOasis 2 жыл бұрын

My pleasure

@Frengdahl 2 жыл бұрын

interesting, linear regression I have never tried to build anything on before, will give it a shot. a wealth of good information in your videos for aspiring algo traders, hats off!

@StatOasis 2 жыл бұрын

glad to share, thank you for watching.

@jedidiahjeff-onyegbule1313 2 жыл бұрын

I love the way you teach... much love

@StatOasis 2 жыл бұрын

Much appreciated

@manu85345 2 жыл бұрын

A soon I close some crypto positions I am definitely going to try your master class

@80amnesia Жыл бұрын

wow just found you channel, thanks!

@StatOasis Жыл бұрын

welcome, you might as well join the FREE community go.statoasis.com/community

@saeedsardar8314 21 күн бұрын

Hi Ali, how I can get the linear regression Angle indicator which you wrote for this video ? could you please let me know I found your channel pretty late now catching up with your quality contents , its a lot really you have done a wonderful job !!!

@StatOasis 21 күн бұрын

i dont think i coded that one, it should be available in all platforms, it is the LR angle

@mykro2208 2 жыл бұрын

At 5:07 in the video you describe the dark green bars in the histogram as being a dip in the Lin. Regression. The second green bar from the right of the first dark green bar shows that 3 Red bars had already closed below the Lin. Regression.. My question is.. When do you close out of the trade..? When a red bar closes below the Lin. Regression..?? If you get two dark green bars in a row youv'e most likely already had 4 or 5 bars close below the Lin. Regression... Thanks

@StatOasis 2 жыл бұрын

you are trading the angle of the indicator, the histogram is just a visualization. think of it this way, if it is rising (red or green) then you go long, if it is falling (red or green) you go short

@jideononuju9841 Жыл бұрын

Thank you for this video, I draw my linear regression channels manually and they work like magic especially in the currencies markets. They only issue is that I don't know where to start from with algo/quant trading. Too many overwhelming information on the internet. And be the biggest issue with the internet is lack of objectivity, you will always find information that fits your views and also opposes your views, we rarely see anyone that is objective. Thanks for this, but how does a beginner start his algo trading journey?

@StatOasis Жыл бұрын

You are right, you will find all views on the internet, but there an objective way to build and test strategies, using rules and statistics, so no objectivity or emotions are used. It requires effort for studying and practice 😊 Check it out go.statoasis.com/atm

@af7960 Жыл бұрын

Hi hope you well, there is a linear reg. Strategy in trading view . Can i activate it for auto trade ? Please

@StatOasis Жыл бұрын

I dont know their programming language (pine script), so i cant know the logic

@JavadAliakbarisomeeh 3 ай бұрын

can we draw objects in SQX? for example a line defining two points?

@StatOasis 3 ай бұрын

No, SQX is not a charting software

@majidghorabi1864 Жыл бұрын

Hi Ali. I hope that the good state. I have two experts, one only opens long positions and the other opens short positions. One important condition is checked by each of the experts before opening any trade, and that is that there is no open trade. Therefore, if the signals overlap, and one of the experts has opened trades, at that point of overlap, the other expert should not enter the trade until the trades opened by the other expert are closed. We measure this condition with the help of "MarketPositionCount" function. We open two windows in Metatrader and run each of the experts in one of them. Unfortunately, what happens is that the "MarketPositionCount" function only works within the expert's own range, and in overlapping areas, both experts are not prohibited from opening a trade, and they don't care if we already have a trade opened by the other expert or no How to solve this problem?

@StatOasis Жыл бұрын

I dont use metatrader, but if both experts trading sme instrument then u can combine them in one with two logics for entry and checking positions. if tradingdifferent instruments the u need global variable or portfolio trader

@pigachejean-eric8537 Жыл бұрын

Which Price of the candle do you Take as dot-point ? Ex Close,; mid price ?

@StatOasis Жыл бұрын

I dont know what part you are referring to, but usually i use close or typical price (H+L+C)/3

@covingtoncreek Жыл бұрын

Thanks for this. Why are you trading long only in the video? It seems like you would want to catch the trend whether long or short.

@StatOasis Жыл бұрын

Of course u can and in a portfolio long and short will work

@kamwene Жыл бұрын

awesome content! I was a Maths major in High school...i often wanted to put my maths into trading..and..presto...you show Up! Thank you very much . I will keep on learning your content 🤗🤗 and when i have an issue I will prod you up. Asante Sana...👏👏👏

@StatOasis Жыл бұрын

Glad to help!

@PabloTejerina Жыл бұрын

The backtest didn't work for me on EURUSD for Forex MT4.

@StatOasis Жыл бұрын

Could be platform, data, timezone

@jushiceoluwale5824 Жыл бұрын

My problem is how to build and customise my system to use Linear Regression. I am a statistician l understand the statistics. Please send to me how to do it

@StatOasis Жыл бұрын

You mean how to code a strategy?

@billythekid9874 Жыл бұрын

How can i find the angle of the single data point? Thnx

@StatOasis Жыл бұрын

Value > value (bars ago)

@billythekid9874 Жыл бұрын

@@StatOasis thnx man, I really appreciate your work and your videos 💪

@anonymanonym8317 5 ай бұрын

اكتر من رائع

@StatOasis 5 ай бұрын

Thank you for your kind words

@MeritZen Жыл бұрын

What should be period settings for hourly chart for crypto/bitcoin trading

@StatOasis Жыл бұрын

There is no best period, you need to test and see 😊

@MeritZen Жыл бұрын

@@StatOasis what's your opinion from your experience? 160 period or 80 period..? I mean, You feel that there is good amount of probability for x period..

@StatOasis Жыл бұрын

These periods work because they are above daily noise but still kind of active, any period in that range is ok as long as it’s not a peak

@MeritZen Жыл бұрын

I need more help! Can you please provide some direct answer rather than Being diplomatic. Different timeframe shows different angles. I have tasted it for 80 period. Not getting good results. Can you give me some settings for the 4 hour chart so that i can test. Or 1 hour chart

@row77 Жыл бұрын

hi, what do you think about fractals?

@StatOasis Жыл бұрын

What do u mean?

@herikaniugu 7 ай бұрын

Fractals are repainting

@dps6968 Жыл бұрын

How does it perform in forex trading?

@StatOasis Жыл бұрын

Most pairs respond well to trend following

@CK-vf8xn 2 жыл бұрын

Thanks

@StatOasis 2 жыл бұрын

Thank you for watching

@luigis.3909 2 жыл бұрын

The name and author of that LRS indicator?

@StatOasis 2 жыл бұрын

"An examination of publications of Sir Francis Galton and Karl Pearson revealed that Galton's work on inherited characteristics of sweet peas led to the initial conceptualization of linear regression. Subsequent efforts by Galton and Pearson brought about the more general techniques of multiple regression and the product-moment correlation coefficient" check out the following for more info: www.tandfonline.com/doi/pdf/10.1080/10691898.2001.11910537#:~:text=Although%20Pearson%20did%20develop%20a,notions%20of%20correlation%20and%20regression.

@luigis.3909 2 жыл бұрын

@@StatOasis hi, the lrs indicator on tradingview?

@StatOasis 2 жыл бұрын

in TradingView search for buil in indicators "Linear Regression", for the angle, that is was my indicator in TradeStation, but you can get something like it in TradingView, search for "Linear Regression Slope"

@chuckdavis9595 2 жыл бұрын

4:24 "plotting the angle at each point in time" ........NOT ! LR line has a constant angle ! what are smoking?

@StatOasis 2 жыл бұрын

Say u plot LR for 100 bars, what happen when new data show up, now u have to include new bar and drop first bar and do the calculation again which might or might not change the slope. What r u smoking? 😁

@ricomajestic 2 жыл бұрын

I think he meant slope although you can quantify slope with an angle