How to set up the correct SL and TP in the strategy properties

[Mario Tena]

Hi,

I have been running the Reactor trying to find strategies for the pair EURUSD in 1H. I have got 16 years of data of candles of 1h.

I am trying to find strategies with more than 550 operations for the 16 years. That means this system will operate around 2-3 times per month.

I have changed many times the strategy properties as SL and TP but still I have not found the right parameters to see what i am looking for.

Would you advice me how can find out the right parameters to make sure strategies comes roughly with 550 ops? I have been told I should set up SL and TP looking at how many pips moves this pair, but still I have not get what I d like.

For this amount of data what would you advice?

Many thanks and best regards,

Mario

[Petko Aleksandrov]

Hey Mario,

Glad to hear from you. You can leave the SL and TP in the Reactor between 1 to 100 pips. This way, you will give the program the freedom to calculate all possible variations.

Now, the date you are using is too much, in my opinion. Because if you have 1-2 trades on average per month, it might happen that you won’t have a single trade some months.

I do not say that it isn’t good, but this does not guarantee that such a strategy is more profitable than the one trading more frequently.

Plus, it might happen that you will have 5-6 consecutive losing trades so that you would be on a loss for a few months with that strategy.

Also, we focus more on the recent historical data (last six months or so) because the EAs will be trading on the current market conditions.

And having good and big data is good, but you do not need to generate the EAs over it. You can generate the EAs for the last two years and check if the EA you like worked well a few years back.

 

 

[Samuel Jackson]

Hi Mario,

What reason have you decided you need so much data? Is there a specific type of strategy that you are targeting?

From above my understanding is that you are playing around with just the stop loss and profit taking ranges in order to obtain strategies that trade only a few times a month?

Presumably your logic is that in doing so you are targeting better entry and exit points that happen more rarely? Are you trying to target trend following strategies?

As Petko says with what you are doing you can easily experience long stagnations or losing periods. If you are determined to stick with such a long time frame and low frequency trading strategy then I would definitely suggest doing so on many assets (30+). I also think its sounds like an unnecessary amount of data though.

I agree with Petko that 1-100 is a pretty wide range for the Reactor/Generator to do its work, would be interesting to understand more about what exactly you are targeting though?

It definitely sounds like you have something clearly in your mind of what you want which is a good thing!

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