Discover reviews on "tested trading strategies" based on Reddit discussions and experiences.
Last updated: January 17, 2025 at 10:20 PM
Summary of Reddit Comments on Tested Trading Strategies
General Comments
- Many commenters express appreciation for the detailed write-ups and strategies shared, with some requesting further insights or expressing interest in a deeper dive or live testing of strategies.
- A few skeptics question the effectiveness of backtested strategies, especially with small sample sizes, zero commissions, and unrealistic assumptions like no slippage.
- Suggestions are made to ensure accurate backtesting by considering factors like commissions, slippage, and accurate fills.
- Concerns are raised about strategies with an extremely high win rate, limited trading history, and high profit factors, indicating a possible overfitting of the strategy to specific market conditions.
- The importance of realistic risk management, understanding Greeks, and keeping a trading journal for self-improvement is highlighted.
- Some users offer collaboration opportunities, sharing data sets, and suggesting books like "Quantitative Trading" by Ernest P. Chan for further learning.
Hints for Strategy Improvement
- Include Commissions and Slippage: Adjust backtesting settings to account for commissions and slippage to make results more realistic.
- Realistic Fills: Ensure that order fills are set to high resolution for accurate backtesting results.
- Consider Market Conditions: Anticipate changes in market dynamics, volatility, and risk management during varying trading periods to enhance strategy robustness.
- Continuous Monitoring: Monitor automated strategies closely to adapt to changing market conditions and unexpected performance shifts.
- Collaboration: Engage with others for feedback, insights, and potential collaborations to improve and refine trading strategies effectively.
- Educational Resources: Further educate oneself on Quantitative Trading, risk management, and strategy development through books and online resources.
Skepticism and Cautions
- Small Sample Sizes: Highlighted concerns about strategies based on limited trading data or unrealistic settings, questioning their long-term viability.
- High Success Metrics: Caution expressed regarding strategies with exceptionally high win rates, profit factors, and questionable assumptions, emphasizing the risks of overfitting.
Positive Encouragement
- Enthusiasm: Several users express excitement about the potential of automated trading, share positive experiences, and offer support for strategy improvement and success.
- Interest in Collaboration: Offers for collaboration, sharing of data, and mutual learning are made as users show interest in exploring and refining trading strategies further.
By considering the feedback, suggestions, and cautions provided by the Reddit community, traders can enhance their trading strategies, address potential weaknesses, and refine their approaches for improved performance in the market.