For fun here's a couple examples of system building. Some
of you know, I don't code the systems and indicators, I'm a market
technician. I visually observe things, then try to write that up
and give to my programmer who then attempts to put into code.
Currently I'm working on this DVT market trend system, which is
very complicated. The higher low stops are pretty easy for the most
part, but having rules to re-enter is where it's difficult. Here's
a couple images showing some things I've given to him to code up.
One of them is sort of a reversion to mean very oversold
condition (Mar 24th, Dec 2018, Mar 2009 etc) but that entry needs a
stop - so I found some conditions that appear to work well -
you can see how I write up the logic.
the second image is quite a bit more complicated. The DVT higher
low stops are nice but what can happen many times is that you get
stopped out by hitting the DVT and the market simply has a simple
ABC or minor pullback - you need a way to get back long vs waiting
for a higher confirmation that would get you in higher then where
you got stopped out. For this I'm attempting to use the color
changes on the BPT MA Deluxe as a way to identify an ABC pullback
and buy back in early vs waiting for price to confirm over the ATR
which would be at much higher prices
anyway just showing for fun giving you an example of what I go
through when trying to develop this stuff - it's tedious work
Posted by lnelson214 on 4th of May 2020 at 08:27 am
Awesome Matt! Definitely shows how tedious system building
is. Us on the outside don't always realize how much work you
put into the systems. Thank you for all that you do!
Very interesting. Thanks for sharing Matt. How do
you avoid curve fitting given the limited number of indices?
Do you back-test using individual stocks?
z0ned - regarding curve fitting that's the whole point of making
these visually. curve fitting only tends to be a problem when
someone runs a backtest, for example they test a moving average
cross system and test all the MA lengths. This visual test
are real live so avoid crap like that - vs just randomly testing
all the settings on a bunch of variables, make sense?
This looks good. Will the trades based off this system go
out to us via email? Will this replace one of the system
trades or be called something new? Thanks.
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example of system building
Posted by matt on 3rd of May 2020 at 10:29 pm
For fun here's a couple examples of system building. Some of you know, I don't code the systems and indicators, I'm a market technician. I visually observe things, then try to write that up and give to my programmer who then attempts to put into code.
Currently I'm working on this DVT market trend system, which is very complicated. The higher low stops are pretty easy for the most part, but having rules to re-enter is where it's difficult. Here's a couple images showing some things I've given to him to code up. One of them is sort of a reversion to mean very oversold condition (Mar 24th, Dec 2018, Mar 2009 etc) but that entry needs a stop - so I found some conditions that appear to work well - you can see how I write up the logic.
the second image is quite a bit more complicated. The DVT higher low stops are nice but what can happen many times is that you get stopped out by hitting the DVT and the market simply has a simple ABC or minor pullback - you need a way to get back long vs waiting for a higher confirmation that would get you in higher then where you got stopped out. For this I'm attempting to use the color changes on the BPT MA Deluxe as a way to identify an ABC pullback and buy back in early vs waiting for price to confirm over the ATR which would be at much higher prices
anyway just showing for fun giving you an example of what I go through when trying to develop this stuff - it's tedious work
Awesome Matt! Definitely shows how
Posted by lnelson214 on 4th of May 2020 at 08:27 am
Awesome Matt! Definitely shows how tedious system building is. Us on the outside don't always realize how much work you put into the systems. Thank you for all that you do!
Very interesting. Thanks for sharing
Posted by z0ned on 4th of May 2020 at 08:08 am
Very interesting. Thanks for sharing Matt. How do you avoid curve fitting given the limited number of indices? Do you back-test using individual stocks?
z0ned - regarding curve fitting
Posted by matt on 4th of May 2020 at 09:49 am
z0ned - regarding curve fitting that's the whole point of making these visually. curve fitting only tends to be a problem when someone runs a backtest, for example they test a moving average cross system and test all the MA lengths. This visual test are real live so avoid crap like that - vs just randomly testing all the settings on a bunch of variables, make sense?
This looks good. Will the
Posted by ssaffer on 3rd of May 2020 at 10:43 pm
This looks good. Will the trades based off this system go out to us via email? Will this replace one of the system trades or be called something new? Thanks.