• Registered: 2007-08-12
  • Posts: 1

Topic: How to make a losing strategy take the opposite trades (CONTRARIAN)

The simple stochastic rule below loses money big time.

All I want is to make it take the opposite trades, consequently it should do the opposite (win)..

How??

<?xml version="1.0" ?>
- <strategy>
  <programName>Forex Strategy Builder</programName>
  <programVersion>2.5.3.1</programVersion>
  <strategyName>straight down</strategyName>
  <instrumentSymbol>USDJPY</instrumentSymbol>
  <instrumentPeriod>hour1</instrumentPeriod>
  <spread>2</spread>
  <swapNumber>1</swapNumber>
  <sameDirSignalAction>Nothing</sameDirSignalAction>
  <oppDirSignalAction>Reverse</oppDirSignalAction>
  <openFilters>1</openFilters>
  <closeFilters>0</closeFilters>
- <slot slotNumber="0" slotType="Open">
  <indicatorName>Bar Opening</indicatorName>
- <listParam paramNumber="0">
  <caption>Logic</caption>
  <index>0</index>
  <value>Enter the market at the beginning of the bar</value>
  </listParam>
- <listParam paramNumber="1">
  <caption>Base price</caption>
  <index>0</index>
  <value>Open</value>
  </listParam>
  </slot>
- <slot slotNumber="1" slotType="OpenFilter">
  <indicatorName>Stochastics</indicatorName>
- <listParam paramNumber="0">
  <caption>Logic</caption>
  <index>2</index>
  <value>The Slow %D is higher than the Level line</value>
  </listParam>
- <listParam paramNumber="1">
  <caption>Smoothing method</caption>
  <index>2</index>
  <value>Exponential</value>
  </listParam>
- <numParam paramNumber="0">
  <caption>%K period</caption>
  <value>20</value>
  </numParam>
- <numParam paramNumber="1">
  <caption>Fast %D period</caption>
  <value>6</value>
  </numParam>
- <numParam paramNumber="2">
  <caption>Slow %D period</caption>
  <value>5</value>
  </numParam>
- <numParam paramNumber="3">
  <caption>Level</caption>
  <value>20</value>
  </numParam>
- <checkParam paramNumber="0">
  <caption>Use previous bar value</caption>
  <value>True</value>
  </checkParam>
  </slot>
- <slot slotNumber="2" slotType="Close">
  <indicatorName>Bar Closing</indicatorName>
- <listParam paramNumber="0">
  <caption>Logic</caption>
  <index>0</index>
  <value>Exit the market at the end of the bar</value>
  </listParam>
- <listParam paramNumber="1">
  <caption>Base price</caption>
  <index>0</index>
  <value>Close</value>
  </listParam>
  </slot>
  </strategy>

  • Registered: 2007-09-06
  • Posts: 34

Re: How to make a losing strategy take the opposite trades (CONTRARIAN)

I would think that you would only need to reverse the "Nothing, Reverse" Action on Direction.

Unfortunately, it isn't currently possible to do the required "Reverse, Nothing" Action on Direction.

3 Reply by Jar Jar

  • Jar Jar
  • Guest

Re: How to make a losing strategy take the opposite trades (CONTRARIAN)

This is your strategy:

A same direction signal - Does nothing
An opposite direction signal - Reverses the position

[Opening point of the position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening logic condition]
Stochastics
     The Slow %D is higher than the Level line
     Smoothing method  -  Exponential
     %K period  -  20
     Fast %D period  -  6
     Slow %D period  -  5
     Level  -  20
     Use previous bar value  -  Yes

[Closing point of the position]
Bar Closing
     Exit the market at the end of the bar
     Base price  -  Close


The direction filter is: The Slow %D is higher than the Level line
Making it opposite The Slow %D is lower than the Level line does not make it profitable:

Forex Strategy Builder v2.5.3.1
Strategy name: straight down
Exported on: 10/14/2007 7:57:55 AM

Market: USDJPY 1 Hour
Spread: 2 pips
Swap Number: 1 pip

Intrabar scanning: Not accomplished
Interpolation method: Pessimistic scenario
Ambiguous bars: 0
Tested bars: 16981
Balance: -10323 pips
Minimum account: -10328 pips
Maximum drawdown: 10336 pips
Time in position: 29 %

A same direction signal - Does nothing
An opposite direction signal - Reverses the position

[Opening point of the position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening logic condition]
Stochastics
     The Slow %D is lower than the Level line
     Smoothing method  -  Exponential
     %K period  -  20
     Fast %D period  -  6
     Slow %D period  -  5
     Level  -  20
     Use previous bar value  -  Yes

[Closing point of the position]
Bar Closing
     Exit the market at the end of the bar
     Base price  -  Close


This logic loses money even when the spread and the swap are 0.