Fixed stoploss, "may use" or "none" when creating strategies?

[dommech]

When backtesting it seems like “none” is indicator based but is very hard to know how big it is.

I did some strategies with “may use” in the beginning when trying out EA Studio. But now i use fixed SL of 10-300 on ex GBPJPY M15 because it’s hard to stommach a large SL (for me atleast)

I saw that petko wrote “SL and TP from 10-10, what does that mean? Ranges betwen 10-? how high nr do you use?

How dou you other guys use the SL when creating strategies?

[Petko Aleksandrov]

Hello Dommech,

Glad to hear from you. I wanted to say from 10 to 100. This is normally what I use. Can you please share where was this post so I can correct it.

And if you choose always use in both from 10 to 100 it means that the generated strategies will always come with a SL and TP within this range.

If you select for example, may use, some of the strategies will be with SL and TP, some will be without. Those that are without will use exit conditions.

[dommech]

EA from September's Portfolio

 

thx for claryfying, btw is 10-100 on M15 only?

[jacpin2002]

@dommech-To answer your question about how others use the stop loss, I actually generate all my strategies without a stop loss. After generation done and I filter my strategies to what I deem acceptable criteria, I then turn on the stop loss and take profit in the optimizer to see if better results are produced with the strategy. If better (like stagnation, drawdown, win %, etc.) then I keep it with the stop loss and take profit. If not, then I leave both with none like in the original strategy.

I’m sure others use this differently, but that it what seems to work for me right now.

[Petko Aleksandrov]

Thanks for the note, Dommech, I have fixed it.

For Forex I try to keep 10-100 range for the SL and TP. Now, some EAs show better results with bigger values, and I leave them with the bigger numbers.

The best thing to do according to me is to have EAs with SL and TP  in your trading portfolio.

The more different strategies, assets, ways of creating the EAs we use, the more diversification we get.

 

[Petko Aleksandrov]

Jacpin,

interesting approach about generating the EAs without SL and TP.

One of the good option also is to use May Use.

By the way, the other psot where you have replayed was scam for Options trading, so I had to remove it.

[dommech]

Interesting @Jacpin, thx!

 

[George Steel]

Hey Petko,

I do to make it all 33% when generating EAs. So 33% are with SL and TP, 33% are without SL and TP, and 33% are with may use option.

Simply I run 3 generators for one asset on one time frame, but with these 3 different options. Works fine so far, and I see that there is good diversification.

[Petko Aleksandrov]

Yes, George, I do it pretty similar, I like to have EAs with SL and TP and in the same portfolio to have EAs without.

We get quite better diversification this way because the EAs without TP can take much bigger profits when there are long, extended moves.

[Kiromasterbitcoin]

I am very new to algorithmic trading, even I have been handling Bitcoins for the last 3 years, but that is totally different.

So I have a question. What is the thing about May Use as Stop Loss and Take Profit in EA Studio? I do not get it. Does it mean that I will need to decide if to use SL and TP?

[Petko Aleksandrov]

Hello Kiro,

whan you are using the generator with the option May Use in SL and TP, this means that the generator will create strategies with SL and TP and without. This means that there might be strategies with only SL or only TP.

This way you leave it to the generator to decide if it will place SL and TP to each generated strategy according the Historical data and the generator set up that you have selected to use.

 

[Author]

Posts