What Is The BEST ASSET To Trade? (for Trend Following & Mean Reverting Strategies)

Рет қаралды 1,325

Күн бұрын

Recently one very important question popped up in my mind, does it matter which asset we are trading? Is one asset easier to trade than another?
The short answer is yes. But how can I prove it?
In this video I answer that question using objective quantitative methods and backtests. To be as diverse as possible, I will test 41 assets in 4 categories: stocks, crypto, forex, and indexes & commodities on 3 timeframes. (Link to the full backtest data down below)
I will also give you a very simple strategy that you can implement into your trading right away.
And on top of all that you can get free access to the invite only TradingView script I used for the backtest.
Tested assets/pairs:
BABA, AAPL, AMZN, META, TSLA, NVDA, MSFT, NFLX, GOOGL, KO, BTC/USDT, ETH/USDT, LINK/USD, ADA/USDT, BNB/USDT, LTC/USDT, XLM/USDT, XRP/USDT, XMR/USD, FIL/USD, GBP/USD, EUR/JPY, NZD/USD, GBP/JPY, EUR/USD, USD/JPY, AUD/USD, EUR/GBP, USD/CHF, USD/CAD,
NI225 (Tokio Index), SPX (S&P500), DJI (USA TOP 30), NIFTY (India TOP 50), DAX (Germany TOP 40), AUS200 (Australia TOP 200), FTSE100 (London TOP 100), NATURALGAS, USOIL, XAU (GOLD), XAG (SILVER)
Tested Timeframe:
15 minute
1 Hour
4 Hour
Tested moving average lengths:
50
200
800
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• Creating The BEST Trad...
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All the backtest data:
drive.google.com/drive/folder...
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Chapters:
0:00 Intro
0:41 Trend Following vs. Mean Reverting Strategies
2:51: Testing Method
4:16 Assets, Timeframes, MA Variations
6:01 Script Used for Backtest
7:02 Ranking System
8:16 Results
9:49 Proof Of The Method's Validity
12:03 How can we use this knowledge?
12:53 Outr
Historical results does not guarantee future profits.
None of the strategies presented on this channel are trading or financial advice, I am not a financial advisor. Do your own research before using any strategy for live trading.
The Strategy Presented in today video Used Paper Trading.
#meanreverting #trendfollowing #tradingview

Пікірлер: 14

@laurynasgud3956 Жыл бұрын

Well done guys. Your work is very much appreciated. Keep it up

@TradeSmart22 Жыл бұрын

Thank you! Will do!

@illusore4 Жыл бұрын

Great work!

@TradeSmart22 Жыл бұрын

Thank you! Cheers!

@theWSt Жыл бұрын

Great video, thx! Momentum and volatility filters sounds like a great topic for the next video! 👍

@TradeSmart22 Жыл бұрын

Thank you! I will start looking into them. Do you have recommendations for momentum and volatility indicators?

@jdanyonsan1950 Жыл бұрын

Great video. Have been thinking for a while that matching asset to the strategy might be a large part of the battle - here's an idea for a video - how far can you push one strategy for one asset (without overfitting/using lots of in sample/out sample data...say 10yrs)? If it were to run on a lower time frame (15m?) you could print money?

@TradeSmart22 Жыл бұрын

Yes that was my exact idea for this video. Choosing assets that are easier to trade is probably a key point. your idea is great, but to be sure a strategy is not overfitted what 99% accurate method do you know? In my opinion only around 2-3 months of live market data performance can prove it (thats why we track all the 35 optimizations we made so far on live market data) So a video like this is only possible (in my opinion) if we check the performance for 3 months on live markets at least and that would make this video type time consuming. But if you are looking something like that check out this video in which I reveal profits of all of our optimizations: kzfaq.info/get/bejne/bct_mZqrydXWd30.html

@jdanyonsan1950 Жыл бұрын

@@TradeSmart22 Have just read back my comment and it might have been a bit unclear regrading in-sample/out of sample. I mean: 1)Take a symbol identified as really trendy. 2) Optimize indicators for a trend-following strategy on that one ticker for 2019,2021,2023 (In-Sample). 3) Include OutOfSample 2018,2020,2022 and optimize further. - Basically do the best job you can on just the one ticker in a RESPONSIBLE manner - The question is ... if you overfitted on very large data sample have you over-fitted? - You might need to give this time to play out - but you could make 1x video now and 1x in a few months to follow up? I think we are all time-poor but if we weren't I wonder if this approach has value?

@flaming-sword007 Жыл бұрын

I think the exit indicators are interesting. They should be clear better than simple 1:1,5 or 1:2 strategies,otherwise they are the better choice,because you do not have to spend a lot of time for monitoring the trades ! On the performance of exit indicators you have to negate some percentages,because in reality you cannot close a position at night !

@TradeSmart22 Жыл бұрын

Thanks for your feedback! I agree a good exit signal indicator should be much better than a simple RR ratio as RR ratios does not care if the asset is in a big trend and there's a high chance of the price moving further in our desired direction.

@flaming-sword007 Жыл бұрын

What do you think is the best Exit indicator ? Rex, Supertrend or another indicator ?

@TradeSmart22 Жыл бұрын

We will test it in the future.

@flaming-sword007 Жыл бұрын

@@TradeSmart22 The best exit indicators should be the best entry indicators for short positions !!