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Hi Team

Just sharing some ADA and model questions that popped in. Many are asking about the backtesting and stop losses.  Stop losses are actually up to the user but the method is based on high conviction names and playing the swings.  Bottoms are mostly found when there is confluence from the 3 models. You can place a stop loss on equities 10% lower. A key part is also what I call layering- the deeper it goes with high conviction the more you layer in and same with layering out. 

First of all this is the 4 hour chart on ADA.  Backtest includes the last 3 years of Data. 

Per the Suite the model did the following:

=> Mean Reversion Model had 83 buys and 51 sells with 90% success rate. 

=> Confluence Model only has 3 buys and 3 sells with 67% success rate

=> Trend Model made 197 buys and 197 sells with 97% success rate. 

The special sauce behind the model is

1) makes you trade less

2) trade more accurately (ie enter and exit only when 3 indicators are confluent - 90% + 67% + 97% = more than 90% chance of success)

3) portion size appropriate

4) modify your trading style and backtest it in real time

5) refine your strategy with levers eg noise cancellation, sentiment, style, LIFO, FIFO, %'s, Fees, Exit fees (taxes), etc


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Comments

Anonymous

The chart has been going from the upper left to the lower right for nine months.

Anonymous

Awesome.. Thanks for sharing james