Topic: No advantage with trailing stop in the EA Studio portfolio

I found a coding solution to integrate the trailing stop function into the portfolio EA studio with the bool true or false switch.

After some backtest, the results without the trailing stop are much more better. It seems that the Indicator Exit in the EA Studio Portfolio generates better results (in the long term run) as the short profit with the trailing stop. Very interesting.

So at the moment my conclusion is, that the trailing stop in the EA Studio portfolio brings no advantage because the generated indicator Exit are much more profitable as the trailing stop in the long run view and additional the strategie in EA Studio corresponds with the MT4 backtest.

How are your experiences?

Regards Chris

Re: No advantage with trailing stop in the EA Studio portfolio

Hello Chris,

Your results are expected. The reason is that you add a Trailing Stop after the strategies are generated, optimized, tested ...

It may be different if the Trailing Stop is in the app and taken into account during the build or optimization process. Unfortunately this features is difficult to be implemented reliably and fast in the program. We put our efforts in strategy design that to be as robust as possible and in the same time very fast for testing.

Re: No advantage with trailing stop in the EA Studio portfolio

A study to compare the benefits of trailing stop revealed that using the trailing stop reduces profitability by quite a bit.

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: No advantage with trailing stop in the EA Studio portfolio

Blaiserboy wrote:

A study to compare the benefits of trailing stop revealed that using the trailing stop reduces profitability by quite a bit.

You say "it returns the profitability by quite bit" what this means?
Did the study have applied out of sample testing? walk foward testing? monte carlo?
Or they have just taken a overfitted system with and without trailing stop?

Systems with "lower" profitability doesn't mean a bad system at all. I prefer a system that gives 80% months on profit with low profitability in out of sample testing than a system that has profitability in the in sample (overfitted backtest).


Popov wrote:

Unfortunately this features is difficult to be implemented reliably and fast in the program. We put our efforts in strategy design that to be as robust as possible and in the same time very fast for testing.

Much respect, We know you doing the best work worldwide.
I still believe one day ea studio will have it, at least for the people who wants to spend some time testing and improving a strategy.

ChristianS wrote:

So at the moment my conclusion is, that the trailing stop in the EA Studio portfolio brings no advantage because the generated indicator Exit are much more profitable as the trailing stop in the long run view and additional the strategie in EA Studio corresponds with the MT4 backtest.

How are your experiences?

I've done my work and have spend some time developing strategies with trailing stop.
My conclusion is that it will produce a much better MFE for the strategy and months in profit in a long run.

The problem I face is that when I develop the trailing by my own I can't stress the strategy with Monte Carlo and use this awesome tool called ea-studio to do it.

Cheers

Hello trader! I'm from Brazil and use to trade Commodities available here (Dolar USD, Ibovespa Futures) I've made my first operation at stock market in February 2011. Went to bankruptcy in the options when ... Read more at ViniQ's Profile

Re: No advantage with trailing stop in the EA Studio portfolio

Yes you are right, I found a small solution for this problem: I implement the trailing stop coding in the finished EA studio portfolio as a coding block( for example including 12 strategies for EURUSD). I also implement the bool true or false input parameter to activate the trailing stop.

Unfortunatelly at a moment we cannot re-import the EA studio porfolio back into the FSB for MC testing (maybe later) but in MT4 strategy tester I run the EA portfolio one time without trailing stop and the second time with the activated trailing stop and compare the results. OK, that is not very professional but at a moment for me the only possibility until the trailing stop is implemented in the EA Studio.

Regards Chris

Re: No advantage with trailing stop in the EA Studio portfolio

I don't want to be right, there is no right answer.

Every professional trader must spend some time reading, understand and applying the concepts it to real world trading.

I suggest everybody to try others approaches with portfolio trading also, as:
a) use a global trailing stop, trail the amount of profit in all open positions for the symbol with a single parameter (eg. all open position > 200$ profit start trailing with x points);
b) use a local trailing stop, trail all open position individually with different parameters.
d) daily max. profit target
e) daily max. loss limit
f) break even (global for portfolio)
g) break even (local for each strategy)

Have in mind more complexity is bad for the system as it tend to overfit the data smile

Good research tongue

Hello trader! I'm from Brazil and use to trade Commodities available here (Dolar USD, Ibovespa Futures) I've made my first operation at stock market in February 2011. Went to bankruptcy in the options when ... Read more at ViniQ's Profile