From the coding series I got the impression that backtesting C1 indicators with large samples alone would do the job. Through the podcast I know better now. Thanks for clarifying and pointing out the downfalls of a quantitative approach only!
Great podcast guys. You have actually cleared up some issues I was having with my back testing process and hopefully I can now move forward with more confidence. Looking forward to next weeks podcast. Cheers.
I’ve found that I simply cannot capture the trends without also catching most of the chaff that essentially bleeds off all my profits from whipsaws. My expectancy is hovering around 0.12-.18 and I cannot seem to filter out the bad trades no matter what I do. Sucks.
I have found this too, and that unfortunately is the reality with most confirmation indicators. The only way around this is to keep testing indicators, finding the best ones and trying to add more layers (but not too much), through additional confirmation and volume filters. You will find you will be cutting out winners, but hopefully cutting out more losers. Although this isn’t NNFX related, but you can pair your trend strategy with a mean reversion strategy, so when there is a lot of whipsaws, another strategy may be able to take advantage of this market condition. This way, you are trading a portfolio of strategies, and not just 1, as there is never going to be use 1 single strategy that will work all of the time.
Hi Dillon, awesome content. thank you for sharing with us! I am a new NNFX adopter here. question about finding out which happens first: hitting 1xATR or 1.5xATR on the opposite direction. If I stay on daily chart and the high/low prices engulf 1xATR and -1.5XATR, how do I know which one was hit first? or I should use 1-minute chart to help me to find out more granular price? thanks!
It doesn't happen often, but you can go on a lower timeframe (h1,h4) to see what happened first. To simplify things I personaly treat this situation as a loss
Hey Mate, sorry for the late reply! I agree it does not happen often so I would personally skip it and treat it as a no trade as it is inconclusive. It's a lot of effort to go into the lower timeframes but if you would like to that would be ideal. Shouldn't have to go into the 1 minute try the 1H or 15M.
great podcast, are really good. im waiting for the next one, i have a question, do you trade only the pairs that worked better in the backtesting or all?
Hey Juan, great question, this is one that I have gotten a lot. We will discuss this in detail in a future podcast, but to answer the question, I don't reduce my pairs based on what performed well in back testing.
forwarding testing is everything. you need to see the indicators doing their thing in real time. you should be able to go back a couple of years and see if an indicator is bad and one that looks promising. but if its promising forward test it.
@@DillonTrades So easy to do! RU-vid doesn't help, mid-rolls by default. Also, be aware they often change terms at times and turn them back on automatically.
The title explains how to find a good strategy. Not giving away a good strategy. Understanding how to find a good strategy or good indicators is very important. If you don’t want to put in the work then don’t bother trading simple
@@DillonTrades Admit it, u just clickbaited everyone. No i'm not looking for a magical strategy on youtube. I've gone waaayyy past that point in my trading journey. All I expected was some kinda visual representation of the title. Not a fucking podcast. Time to look elsewhere
