> > 1) What is the way to exit from position. > I saw such line of code addParam(EXIT, 12, 18, 1, 14); at > Pendulum1 class. > 12 -- min > 18 -- max > 1 -- step > 14 -- value > I didn't understand how these parameters relates to stop .(may be in > case of price will be 12 or 18 exit from the trade , but if so what is > the step and value parameters are responsible for?) >
The "value" is used for live trading, backtesting, and forward testing. The other three (min, max, step) are used for optimization. During the optimization, JBT iterates through all combinations of parameters. For example, if one of the parameters is EXIT, an it's set with min=12, max = 18, and step=1, the optimizer will try all values in the range from 12 to 18. It's important to note that in the case of this particular strategy, the EXIT does not refer to the number of points at which the stop loss happens. Instead, it's simply a threshold for the indicator used in this strategy. This strategy is called Pendulum for a reason. Think of a real pendulum. When its swing reaches the extreme point (defined by the pendulum velocity and acceleration), you can think about this moment in time as a "long entry" condition. When it reaches the neutral point, it can be thought as an "exit" condition. > 2) What is the way to define stop loss? > There is no built-in method for this in JBT. However, this can be easily implemented. In my experience, stop losses do not improve the risk/reward profile of the strategies, so I don't use them, and that's why JBT doesn't have it. > 3) What is the best practice to test strategies based on bar/candle > stick analysis? > For example: I need to check: > in case after predefined condition I start > counting the bars number and enter the trade after closing bar number > 3? > > JBT is meant for book trading (i.e. microscopic analysis of the market based on the exchange limit order book). It's not a bar-based trading system. > 4) What TAU parameter means? > > TAU refers to time delay. It's just a smoothing parameter in this particular strategy. -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To view this discussion on the web visit https://groups.google.com/d/msg/jbooktrader/-/g7f-4bwqqAMJ. 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.
