If May 6 data is real, then it should not be excluded for testing,
what we need is a more robust strategy to handle this black swan.

However if it is just dirty data, I completely agree with you.


On Jun 9, 10:41 am, nonlinear5 <[email protected]> wrote:
> May 6 will probably distort backtesting and optimization results
> beyond recognition. I am thinking of totally dropping the May 6 data
> from my data set.
>
> On Jun 9, 11:51 am, new_trader <[email protected]> wrote:
>
>
>
> > results for ES confirmed: the strategy is loosing lots of money.
>
> > Other situation for the NQ:
> > optimized from Jan. 2010  to Apr 2010 and backtested from Mai 2010 to
> > June 2010 we have the following results:
> > Trades: 160
> > Net Profit: 2807
> > Profit Factor: 1.21
> > Max DD. 3839 (on May 6 when the stock markets stalled, but recovered
> > to the state before May 6)
>
> > On Jun 9, 1:37 pm, Eugene Kononov <[email protected]> wrote:
>
> > > I tested this on a larger data set (Dec 2009 to June 2010), and it turned
> > > out a loss of $8000.
>
> > > On Wed, Jun 9, 2010 at 6:02 AM, bluemaster <[email protected]> wrote:
> > > > I tested combined profit taker and loss stop Eugene strategy and made
> > > > money on  all 4 instrument
> > > > DAX,ES,SPI and EUR.
> > > > I wish I know hot to add extra priceSMA indicator  maybe some one can
> > > > help :-)
>
> > > > here you are :
>
> > > > ---------------------------------------------------------------------------
> > > >  ----------------------------------
>
> > > > package com.jbooktrader.strategy;
>
> > > > import com.jbooktrader.indicator.velocity.*;
> > > > import com.jbooktrader.platform.indicator.*;
> > > > import com.jbooktrader.platform.model.*;
> > > > import com.jbooktrader.platform.optimizer.*;
> > > > import com.jbooktrader.strategy.base.*;
>
> > > > /**
> > > >  *
> > > >  */
> > > > public class ProfitTakerLossStopper extends StrategyES {
>
> > > >        // Technical indicators
> > > >        private final Indicator balanceVelocityInd;
>
> > > >        // Strategy parameters names
> > > >        private static final String SLOW_PERIOD = "SlowPeriod";
> > > >        private static final String ENTRY = "Entry";
> > > >        private static final String TARGET = "Target";
> > > >        private static final String STOP = "Stop";
>
> > > >        // Strategy parameters values
> > > >        private final int entry, target, stop;
>
> > > >        public ProfitTakerLossStopper(StrategyParams optimizationParams)
> > > > throws JBookTraderException {
> > > >                super(optimizationParams);
>
> > > >                entry = getParam(ENTRY);
> > > >                target = getParam(TARGET);
> > > >                stop = getParam(STOP);
> > > >                balanceVelocityInd = new BalanceVelocity(30,
> > > > getParam(SLOW_PERIOD));
> > > >                addIndicator(balanceVelocityInd);
> > > >        }
>
> > > >        /**
> > > >         * Adds parameters to strategy. Each parameter must have 5 
> > > > values:
> > > > name:
> > > >         * identifier min, max, step: range for optimizer value: used in
> > > > backtesting
> > > >         * and trading
> > > >         */
> > > >       �...@override
> > > >        public void setParams() {
> > > >                addParam(SLOW_PERIOD, 100, 4000, 100, 3400);
> > > >                addParam(ENTRY, 10, 30, 1, 15);
> > > >                addParam(TARGET, 1, 20, 1, 5);
> > > >                addParam(STOP, 1, 10, 1, 7);
> > > >        }
>
> > > >        /**
> > > >         * Framework invokes this method when a new snapshot of the limit
> > > > order book
> > > >         * is taken and the technical indicators are recalculated. This 
> > > > is
> > > > where the
> > > >         * strategy itself (i.e., its entry and exit conditions) should 
> > > > be
> > > > defined.
> > > >         */
> > > >       �...@override
> > > >        public void onBookSnapshot() {
> > > >                double balanceVelocity = balanceVelocityInd.getValue();
> > > >                int currentPosition = getPositionManager().getPosition();
> > > >                double priceDiff = 
> > > > getPositionManager().getAvgFillPrice() -
> > > > getMarketBook().getSnapshot().getPrice();
> > > >                double profit = 0;
> > > >                if (currentPosition > 0) {
> > > >                        profit = -priceDiff;
> > > >                } else if (currentPosition < 0) {
> > > >                        profit = priceDiff;
> > > >                }
>
> > > >                if (profit > target) {
> > > >                        setPosition(0);
> > > >                } else {
> > > >                        if (balanceVelocity >= entry) {
> > > >                                setPosition(1);
> > > >                        } else if (balanceVelocity <= -entry) {
> > > >                                setPosition(-1);
> > > >                /* Stop Loss */
> > > >                                double loss = 0;
> > > >                                if (currentPosition > 0) {
> > > >                                        loss = priceDiff;
> > > >                                } else if (currentPosition < 0) {
> > > >                                        loss = -priceDiff;
> > > >                                }
>
> > > >                                if (loss > stop) {
> > > >                                        setPosition(0);
> > > >                                } else {
> > > >                                        if (balanceVelocity >= entry) {
> > > >                                                setPosition(1);
> > > >                                        } else if (balanceVelocity <=
> > > > -entry) {
> > > >                                                setPosition(-1);
> > > >                        }
> > > >                }
> > > >        }
> > > > }}}
>
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