I made an improvement to the SPY Breakout Subsystem the attached
image shows the original at the top and the newly adjusted one at
the bottom, with detailed text and annotations explaining it
all.
The Breakout sub system uses a variety of stops. It has 3
price based stops based on time, one is called a fast stop that
kicks in after a few bars, another one kicks in after 10 bars,
another one after 20 bars. There are also stops using the PSAR
indicator and the ATR
As you know the most recent breakout trade stopped out too pre
mature, basically the fast stop was too aggressive / tight IMO, you
can see that is what happened 3 times earlier this year with those
tiny trades stopped out too quicky and the most recent one.
Therefore I made that 1st stop a bit wider and here are the
results, now all those quick trades from summer hold nicely for 2
and 3 weeks even 1 month. Also the most recent trade no longer
stops out like it did a couple weeks ago, in fact it's still long!
You can see it shows an exit yesterday but that's not a full exit,
it's for 1/2 the position with 1/2 still open.
yeah I know it sucks that we are not in that trade and that it
would still be open under these new stop adjustments (I wish I had
adjusted the stop a couple months ago as it was on my mind to do
so, but I just never had the time). Anyway as I always tell you
guys, I make adjustments/improvements to these systems, so even
though we are not in this current trade, the system is now
theoretically better for next time.
Also regarding that DVDS short trade that stopped out. I'm
adding a secondary filter based on the DMI indicator that appears
to be a posiive benefit, it filters out that last losing trade and
doesn't affect any past trades. I only make changes to the systems
if the history as a whole is improved and it makes logical
sense.
I made a beneficial change to the SPY Breakout sub system see details
Posted by matt on 2nd of Dec 2020 at 01:18 pm
I made an improvement to the SPY Breakout Subsystem the attached image shows the original at the top and the newly adjusted one at the bottom, with detailed text and annotations explaining it all.
The Breakout sub system uses a variety of stops. It has 3 price based stops based on time, one is called a fast stop that kicks in after a few bars, another one kicks in after 10 bars, another one after 20 bars. There are also stops using the PSAR indicator and the ATR
As you know the most recent breakout trade stopped out too pre mature, basically the fast stop was too aggressive / tight IMO, you can see that is what happened 3 times earlier this year with those tiny trades stopped out too quicky and the most recent one. Therefore I made that 1st stop a bit wider and here are the results, now all those quick trades from summer hold nicely for 2 and 3 weeks even 1 month. Also the most recent trade no longer stops out like it did a couple weeks ago, in fact it's still long! You can see it shows an exit yesterday but that's not a full exit, it's for 1/2 the position with 1/2 still open.
yeah I know it sucks that we are not in that trade and that it would still be open under these new stop adjustments (I wish I had adjusted the stop a couple months ago as it was on my mind to do so, but I just never had the time). Anyway as I always tell you guys, I make adjustments/improvements to these systems, so even though we are not in this current trade, the system is now theoretically better for next time.
Also regarding that DVDS short trade that stopped out. I'm adding a secondary filter based on the DMI indicator that appears to be a posiive benefit, it filters out that last losing trade and doesn't affect any past trades. I only make changes to the systems if the history as a whole is improved and it makes logical sense.
Great stuff, appreciate your tweaking
Posted by focus175 on 2nd of Dec 2020 at 02:15 pm
Great stuff, appreciate your tweaking and method for making adjustments!