I agree with Shaggs on all points. However, I've got a number of requests to illustrate how stops/trails/targets can be implemented, so as I promised, I'll include the corresponding sample strategies in the next release.
On Jun 1, 10:23 pm, ShaggsTheStud <[email protected]> wrote: > Warning, this is going to sound harsh! It is, but I'm not trying to scare > you away, I just want you to read the code some more, and plan out in your > head (in a very literal way) how you would solve these problems - a very > useful exercise. If you think you have the solution, try to code it (just > don't start trading live!) > > This is where I am trying to understand using multiple strategies per > > > instrument for IB and risk management. What if S1 was cancelled by a > > reverse position by S3 and the rest of the strategies are all losing > > money? What is the best risk management approach? > > 1) Create strategies that don't lose money? *grin* > 2) Only trade as many strategies as you can afford to trade. If you can > only afford to trade 1 contract, only trade one strategy. Period. > Otherwise, you will over-leverage. > 2) If you want a stop loss, write it into the strategy. That isn't hard > to do, at all, and if you find that it is, you should NOT be trading your > account with JBT. This isn't meant to be disrespectful, this is meant to > save your ass. Know what you are doing, or don't do it. > > How do we prevent a black swan event and have our account wiped out > > > without a stop loss feature? > > That is for you to figure out. Every trader has a different perspective on > this situation, but I would trade with JBT only while you are watching the > system and your brokerage account and are there to manually intervene when > market conditions get bad (you probably should be out of the market long > before things get bad, unless you are lucky enough to be short in a crash). > JBT does not have this built in - feel free to write some experimental code > and report back what you find - as this is a common topic that is > unresolved. > > > > > > I've experimented with a stop loss on many different strategies, but > > > testing them one at a time, not as a portfolio, as you suggest. There > > > is no concept of a "portfolio" view in JBT where you can set the > > > targets and exist for a set of strategies as a whole, but yes, it can > > > be done. > > > It would be great if we have that portfolio feature with the ability > > to set profit targets and stop losses per day for each instrument. > > Then one can design a system with a positive expectation. > > Profit target per day? I think that would be completely silly for an > automated trading program, but that is just my opinion. Do feel free to > prove me wrong - by writing a winning strategy that implements these > features, and documenting the optimization results demonstrating that this > philosophy has better results than not using this philosophy. IMO, these > are rules to keep traders' heads on straight and not let the emotions take > over - problems that computers don't tend to have. > > > -- > > You received this message because you are subscribed to the Google Groups > > "JBookTrader" group. > > To post to this group, send email to [email protected]. > > To unsubscribe from this group, send email to > > [email protected]<jbooktrader%[email protected]> > > . > > For more options, visit this group at > >http://groups.google.com/group/jbooktrader?hl=en. -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jbooktrader?hl=en.
