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You Wrote:
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If you are encountering these problems, then do the following:
Go to a lower resolution data. (If you're using daily bars change to 60 min
or 30 min etc.)
Write your stops into your code and just don't use the built-in stops.
Should reduce/eliminate any such problem.
IndexTrader
> >> > I'm interested in learning more about the theory and coding of
trailing
> >stops. I would appreciate references to good written discussions and
> >easylanguage code examples. Thanks in advance.
> >
> >
> > Would someone please address the issue of why use of trailing stops in
> >backtesting is a *mistake*?
>
> The problem is that using trailing stops in backtesting is very likely to
produce results that are much higher than the same system would have
achieved in real time.
>
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My reply:
I use two data streams when testing swing trading systems. The rules are
based on the daily bars which is Data2 and the trades are taken off 1 minute
bars which is data1. This executes trades closer to actual real time
results.
Regards,
Michael M.
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