Automated trading Tools and Systematic methods for Testing MTDS7 powered Strategies
Be methodical use a control system use the Control Document XLS
>>using a database /excel see the tools provided - the control document - lists all you try and how it performed what stage it go to in the testing workflow
1. Backtested from sept 2009 to Spetmeber 2016 - visual sense checked and passed/failed
2. if passed out of sample data backtest /passed/failed
3. if passed - run on sim in realtime -
Sim Realtime Testing - record stats in the Weekly Stats XLS
After you have identified your candidate systems, run for 3 months to 6months in sim realtime and collate the stats/ - there is an excel tool provided make notes on volatility/ range/ volume analysis of the current markets /trend and structure and compare back to the stats achieved in the same kind of conditions - drawdowns/ win phases identifty how and when.. .and use tihs intel for launch control of the systems.
Use the process of statistical evidence and feedback of settings and performance of an instrument/dataseries/strategy/ setting combination... and add/defer/alter enhance the systems and record the changes you made and save as settings and go through the workflow for each change, backtest, sense check, out of sample and realtime sim testing
so you build and maintain your own database of: instruments/ dataseries/ strategy name, Settings template, results
Then you have done your due diligence etc and will have statistical evidence - this is your guide not understanding the periodic table and nuts and bolts of the race car - but how the setup works and the driving premise/algo...
And this process gives you the belief and experience in the systems and the ability to act or stick with it during a drawdwon, which provides psychological trading conditions for success to occur.
Other Suggested Reading
- New Market Wizards
- Way of the Turtle -
- Mechanical trading systems - Earik Beann
- Mechanical Trading Systems - Pairing Trader Psychology with Technical Analysis - RICHARD L. WEISSMAN
Now you need to understand some of this also for RR and Expectancy