Re: [JBookTrader] own stop loss system and strategy reset

Wed, 24 Feb 2010 07:05:35 -0800

Shaggs,
In backtesting that I have done ( and this has been said by others here)  the observation is that stop losses do not increase long run performance. 
Seems to me the best way to protect against big down days is to have more big up days to offset.  Having said that, I added an item in the strategy
pop-up that lets me go flat at any time and switch the mode to from live trading to forward testing. 

Some time ago, I coded a trailing stop that I thought would surely  increase profitability in my strategies.  To my chagrin, wound up adding it to my strategy
scrap heap ( which is substantial) .




ShaggsTheStud wrote:
Personally I think the stop loss should be part of the strategy.   If you are looking for an "OMG Get me out because the sky is falling" type of stop loss, I think the idea would be to stop all trading on the strategy until human intervention.. which would probably be to restart the program. 

Maybe we are already on the same page with this...

I have no implementation advice for this.


On Mon, Feb 22, 2010 at 1:23 PM, new_trader <[email protected]> wrote:
when implementing an own stop loss system for minimizing losses or
when closing a position via a trailing stop in a strategy to let the
profits run there is a little "problem":
the "money management" strategy says to close a position for whatever
reason and succesfully closes the position. The indicator
constellation of the strategy, for example in the sample SecondNature
strategy, will reopen a new position immediately, because the
indicators still have the constellation to open a position.
What would be our recommendation to "tell" the strategy that it should
forget the past and start calculating a new interesting position entry
from scratch?

Thanks in advance for your help!

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