Tuesday, October 30, 2012

Live Trading - POSTPONED!

As I mentioned earlier, I am using a 70 tick chart for my charts.  I assumed that the tick count started at the beginning of the session each day.  With the platform I am using, that is apparently NOT the case.

I noticed this because of end of session, I print a screenshot of my entries and exits.  When I went back to the platform (and closing and opening it), I discovered completely different looking charts.  It looks like the start point for counting is not session start.  Maybe it is the first bar in memory.  I don't know.


What does this mean?

Well, for starters, it means that all the backtesting I did is worthless.  So, I have to go back and do it again.  This time I will use 30 second bars, or 1 or 2 minute bars.


Bottom Line:  I am not ready to trade this live, until I re-evaluate things.  Maybe the beginning of next week.  I am in a hurry to trade live, but not in a hurry to lose money!


3 comments:

  1. Typical problem with tick, volume, range, renko, etc. charts! They normally start at whatever point is the earliest data the chart is using.

    But does it really matter? You should have similar backtest results for the new charts with the slightly skewed 70-tick bars. Sure individual trades will differ, but in total, if there is an edge with your method, net results should be very similar.

    ReplyDelete
  2. Yes, you have a valid point. And honestly, I did not check to see if that was the case.

    I got spooked when charts were different, and since I need the ability to go back and review the exact same chart after the fact, I just can't live with what the software is doing.

    I also never fully embraced the whole 70 tick chart in Forex, since each broker will have their own definition for what a tick is (volume based, transaction based, bid/ask change?), and their own tick count. I really need a strategy that is fully portable between brokers, without needing to retest it.

    ReplyDelete
  3. There are three kinds of players on the forex marketplace. The primary are those i defined earlier than: the hedger or business gamers. The second one are the financial institutions which includes banks and retirement funds. The 0.33 player available on the market includes individual retail buyers. Retail traders are a fringe group in the whole forex market, but this does not make it an unimportant one. The institutes and retail investors are on the market to earn cash, while the hedgers are there to cowl destiny losses.
    Forex signals
    forex signals service

    ReplyDelete