forex software

Create and Test Forex Strategies

forex software

Skip to forum content

Forex Software

Create and Test Forex Strategies

You are not logged in. Please login or register.

Forex Software → Forex Strategy Builder Professional → Usage of Indicators and Indicator Slots

Pages 1

You must login or register to post a reply

RSS topic feed

Posts: 6

Topic: Usage of Indicators and Indicator Slots

It should be noted by all users that each slot in each indicator can be used on its own to make a complete strategy.

Some people feel that they need to have several slots open, that will cause trouble re curve fitting.

Allowing the generator to toss up a mixture of indicators and slots is not the best use of time.

A lot of what the generator produces can be controlled by the profit protection and the Acceptance Crteria in the Control Panel.

Two or three indicators at the very most, more than that will bring problems in future......

Keep in mind that a lovely backtest does not promise rewards in the future.

In manual trading, some people like to clutter their charts with indicators and then get analysis paralysis...... automated trading is the same.  Use the bare minimum to get good results that you will be able to depend on.

Re: Usage of Indicators and Indicator Slots

Here is an example

Note that I have three things locked...... only the closing logic can be generated.

I am working with this as I type this message.....

This is what I do all day and all night...... work with one indicator logic slot which I keep locked......

This is a lot simpler and far more effective than using several slots...

Re: Usage of Indicators and Indicator Slots

You are completely right,

This setups has one major advantage - since we trade only at Bar open (note that Bar close is nothing more than the next bar Open), we do not rely on the bar interpolation methods. The benefits are:
- more closer results in FSB Pro, MT tester and the real trading.
- no need of intrabar or tick data.

The only exception is when the strategy uses both Stop Loss and Take Profit. FSB Pro solves this problem categorically. If there are simultaneously SL and TP in the range of a bar with an open position, FSB Pro closes at SL. In that way FSB Pro never guesses for the exit and doesn't show overestimated results. The program marks such bars as "Ambiguous" to be clear for everyone what it is happen.

Additionally to that, I may recommend you to use only Simple moving averages. It increases the value of the shown benefits.

Re: Usage of Indicators and Indicator Slots

Next step will be to have a long look at the generated results and determine which results warrant further work. That will take some experimenting and perhaps optimization... as I am looking for certain requirements to be met.

I need things like consecutive losses and win/loss and profit factor and system quality to fall within a certain range......

I am waiting now until the generator has given me 500 results before I start into the next step.

There, that should give you some ideas as for your own procedures.


Re: Usage of Indicators and Indicator Slots

I have my 500 in the collection......... the reason I prefer such a number is so that I have a good selection.

I will use the filters on the collection page, separately and in combinations to bring up different results.

I am not too pleased that the best win/loss so far, is 0.48 so I will be trying to find ways to bring that up. This is where i will have to be inventive, adjusting things until I get the desired metrics......

Maybe I will adjust the stop loss or take profit. and use the optimizer to help.

In any event, this is the hard part....... manipulating the profit protection and the closing logic until I get what I want.

I will not touch the opening logic as I want that constant to prevent curve fitting....

The main part of this task will be to use the control panel 'Acceptance Criteria' to optimize and reoptimize with different parameters..... This can take a couple days trying different things......

That Optimizer is the power of FSBPro, it can do wonders modifying a generated strategy to something worthwhile.

Because my strategy has few variables, I can quickly determine if a change is worth working on, it takes only a few minutes in the optimizer.

One this part is done. walk forward is next......... I just break up my data into different chunks and check the journal and the equity curve for each chunk. That will show me quickly the bad parts and the good parts.....

Easy enough to manipulate the Data Horizon to get several different periods to examine. It is actually more accurate to do it manually than use an automated walk forward.

The walk forward is the most important part of this exercise as it will quickly show the weaknesses. Inspecting the indicator chart carefully will sh0ow the problems and perhaps indicate a solution.

You will notice that I have not used Monte Carlo yet. it is a deception to use Monte Carlo before Walk Forward......

A waste of time if omitting Walk Forward.. do not be fooled!

Using OOS in the generator is great but it does not eliminate the need for Walk Forward. Unfortunately we have to do some manual work.

Comments Please!  Let's help others to find a way to make some money with automated trading.

Re: Usage of Indicators and Indicator Slots

We can lock the Profit Protection or set it to a specific operation.

Some experienced strategy developers choose to preset the take profit or breakeven or stop loss to give their strategy more stability.

Both of these ideas reduce the dreaded curve fitting.

Posts: 6

Pages 1

You must login or register to post a reply

Forex Software → Forex Strategy Builder Professional → Usage of Indicators and Indicator Slots

Similar topics in this forum