Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

chichihang

What if 2 strategies combined into 1?

Recommended Posts

Hi all,

I'm a beginner and just started to learn and practice algotrading. Today I anticipate a question....

I've 2 strategies, one is Long Entry, another is a Short Entry
When I run backtesting of these 2 strategies for same period same instrument, it gives me a profit of 40% and 20% for example.

What if I combine these 2 strategies into 1? Will it give me a 60% profit??

Hope someone can answer. Thanks a lot!

Share this post


Link to post
Share on other sites

I'm a newbie too, but what I've learned so far is the KISS method (Keep It Simple Stupid). The more tool and method you use the more confusing it will become. Don't overcomplicate things. When you follow a proven simple strategy and you start piling it becomes hard to figure out what is working and what isn't. You also limit the number of trades that you could execute and start missing out on possible great opportunities.

Edited by Jason Solomon
Got an other idea to add to the post

Share this post


Link to post
Share on other sites

It is good if you can do so. A single strategy is a better option as far as I think as it will improve your vision to took at the market. Your eye must be sharp enough to enlight upon the opportunity. Thank you for posting on the www.traderslaboratory forum. 

Share this post


Link to post
Share on other sites

chichihang,

I know you are still waiting years later with rapt anticipation for answers to your question.  ;)

One simple answer is  Run correlation studies on the returns of the two systems.

If they correlate, positively OR negatively, do NOT 'combine' them.

If the returns of the two systems  have a low correlation, jump all over it.  Overall performance may even exceed the 40 and 20% of the single system examples in the OP.

 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Many retail traders turn to the forex market in search of fast profits. Statistics show that most aspiring forex traders fail, and some even lose large amounts of money. Leverage is a double-edged sword, as it can lead to outsized profits but also substantial losses.
    • ... want to see some day to day ‘politial’ perspective on the plandemic?  https://www.zerohedge.com/economics/right-cue-biden-who-admits-high-cycle-pcr-tests-produce-massive-covid-false-positives btw... If Trump had had the courage NOT to shut-down the ‘world’, this would have been all over by now ... I’m just sayin’
    • Date : 21st January 2021. USD Data – Claims Remain Elevated, Housing & Philly Fed beat. EURUSD, H1 US initial jobless claims fell -26,000 to 900,000 in the week ended January 16. This follows the prior week’s sharply downwardly revised 142,000 surge to 926,000 (was 965,000) which was the highest level since late August. But the 4-week moving average rose to 848,000 versus the prior 824,500 (was 834,250). Initial jobless claims (NSA) tumbled -151,300 to 960,700 in the January 16 week after rising 192,300 (was 231,300). Continuing claims dropped -127,000 to 5.054 million in the January 9 week after bouncing 109,000 to 5.81 million (was 5.271 million). The initial claims number will get a little extra scrutiny as it coincides with the BLS employment survey week. US housing starts climbed 5.8% to 1.669 mln in December, well above expectations, following the 3.1% jump to 1.578 mln (was 1.547 mln) in November. This is the fourth straight monthly increase and is the highest since late 2006. Building permits increased 4.5% to 1.709 mln last month after November’s 5.9% surge to 1.635 mln (was 1.639 mln). All of the strength in starts was in the single family arena, posting a 12.0% pop, while multifamily starts dropped -13.6% following respective increases of 1.4% (was 0.4%) and 9.1% (was 4.0%). And this is an 8th straight monthly gain (since May) for single family starts. The Philly Fed manufacturing index rebounded 17.4 points to 26.5 in January, much stronger than expected, after dropping -11.6 points to 9.1 (was 11.1) in December. The index has been in expansion since June and was at 13.7 a year ago. Gains were broadbased. The employment index surged to 22.5 from 5.6 (was 8.5). The workweek edged up to 18.6 from 15.5 (was 18.0). New orders jumped to 30.0 from 1.9 (was 2.3). Prices paid nearly doubled to 45.4 versus 24.9 (was 27.1) and prices received increased to 36.6 from 16.1 (was 18.0). The 6-month activity index rose to 52.8 from 43.1 (was 39.2). But the future employment gauge dipped to 38.9 from 41.3 (was 41.0), and new orders were unchanged at 47.5 (December was revised from 41.5). Prices paid slid to 41.3 from 45.1 (was 46.6), with prices received at 33.9 from 34.3 (was 35.5). The Dollar moved slightly higher after the mostly upbeat data, which saw initial jobless claims fall less than expected, but continuing claims down more than forecast. Housing starts beat expectations, while the Philly Fed index was stronger than consensus. USDJPY traded from near 103.45 to 103.55, while EURUSD initially dipped to near 1.2150 from 1.2165. Equities have opened higher, all three of the major US indices at all-time highs, the USA100 leads the way to trade at 13,310. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • https://off-guardian.org/2021/01/03/what-vaccine-trials/   Excellent followup at https://blog.nomorefakenews.com/2021/01/15/covid-vaccine-secret-a-stunner/
    • USD/CAD Is in an Oversold Region as Buyers Are Likely to Emerge   Key Resistance Levels: 1.4200, 1.4400, 1.4600 Key Support Levels: 1.3400, 1.3200, 1.3000 USD/CAD Price Long-term Trend: Bearish The Loonie is likely to continue its downward move. The recent upward move has been repelled by the 21-day SMA. Presently, the pair is falling and has fallen to the low of 1.2690. The loonie may reach the low of 1.2620. USD/CAD – Daily Chart Daily Chart Indicators Reading: The 50-day and the 21-day SMAs are sloping downward indicating the downtrend. The Loonie has fallen to level 43 of the Relative Strength Index period 14. It is below the centerline 50. A further downward move is likely. USD/CAD Medium-term Trend: Bearish On the 4-hour chart, the pair fell as the uptrend reaches the high of 1.2799. In the last 48 hours, the downward move has persisted. The overall trend has been bearish. The pair may resume upward if the price falls and reaches the low of 1.2620. USD/CAD – 4 Hour Chart 4-hour Chart Indicators Reading Presently, the SMAs are sloping northward indicating the uptrend. The Loonie has fallen below the 20% range of the daily stochastic. It is in a bearish momentum. The pair is still in the oversold region of the market. Buyers are likely to emerge. General Outlook for USD/CAD The USD/CAD is likely to continue its downward move as price faces rejection at the recent high. The price sometimes fluctuates as the market continues its downward move. In the previous price action, the pair fell and rebounded above 1.2650 on January 14. Source: https://learn2.trade 
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.