Trend Following with a Trailing Stop: Should you add one or not?

Рет қаралды 1,210

Күн бұрын

Average True Range Trailing Stop is a great addition to many strategies, but will be it worth it to add it to a Trend Following Strategy?
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Content Time Stamp:
-------------------
00:00 Introduction
00:58 Typical trend following strategy example
02:54 Trend following strategy in Algo Wizard , SQX
04:28 Using the optimizer in Algo Wizard to see the distribution
06:10 Trend following on Interest Rates
07:09 Optimizing ATR Trailing Stop on S&P500 TF strategy
09:09 Checking the results of ATR optimizations
11:53 Epilogue
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Пікірлер: 12

@Yewbzee 2 жыл бұрын

Thanks for sharing Ali.

@StatOasis 2 жыл бұрын

My pleasure

@JoshuaEddyson 2 жыл бұрын

Good Information. Thanks for the video

@StatOasis 2 жыл бұрын

Glad it was helpful!

@te4915 Жыл бұрын

Great video, thanks. What breakout look back is best do you think?

@StatOasis Жыл бұрын

there is no best period. shorter period will capture short term edges, while longer periods will capture long term trends. some markets work well with both and some with one of them and some with none 😀 testing is your only friend

@alpha12th 2 жыл бұрын

Good suggestion. If we are using the ATR STOP loss indicator from Ceyhun, the ATR setting is 9, HHV period (?) & Multiplier? How about Forex?

@StatOasis 2 жыл бұрын

in general (regardless of instrument) it is a balance between staying in the trend and not giving money back when the trend reverse. From testing 6-9 multiplier of (20) bar ATR is a good zone. I am in the camp of making it simple so you can use those figure for all markets, but of course nothing wrong with optimizing for sectors, say Interest rates get a different number than Stock indexes as they are different creatures.

@Dayydreamer7 Жыл бұрын

I want to have an ATR trailing stop that jumps to break even after X number of pips. Then, after X number of pips, trails tightly on the 9EMA. Then, after X number of pips, sells at close of next bar. I deeply appreciate any assistance pointing me in the right direction because I’m struggling to figure out how to do this.

@StatOasis Жыл бұрын

You need to program those in, so it depends on which platform you have you will need to learn its scripting language, you can also higher one to program them for you and learn from them. Of course forums facebook, and discord servers about your platform will have a lot of help. My advice is to ask one at atime

@Dayydreamer7 Жыл бұрын

@@StatOasis From what I've gathered, bringing your own code to Strategy Quant X sometimes allows you to backtest (and try new variables) and sometimes not. If I have the code for this exit, do you know if Strategy Quant X will allow me to backtest it in a strategy? Thank you so much for the clarity and your time. I just signed up for your newsletter and I'm going to take your Algowizard course.

@StatOasis Жыл бұрын

not all strategies are doable in SQX, but most are. in SQX you can easily add stop loss, plus a trailing stop, plus a breakeven stop with a click and you can use any formula like ATR, STDEV, pips, etc. to add more you need to do programming and variables