Traders' Roundtable

Dear all ,

Am I doing something wrong .. have done thousands of runs on the bollinger counter trend system using 100 % of capital on it alone .. the parameters for cagr seem to be - 3 % to + 3 % and Nothing outside of it .. perhaps only 1 or 2 trades a year .. I think it maybe a system error .. does anyone have any approx. parameters I could test with that show something outside of this .. I dont want your secrets haha.. just something volatile to tell me if I have a system error ..
Much appreciated

Chris

Chris,

I feel your pain. I had great expecations when i first heard counter trend. We can make money all of the time.. Yippee

I have found, that very small intervals work best, so when you do stepping do it in small increments. I think there is a very small window of operation for that type of system. However, that being said, i dont think you are going to find that system will make you tons of money as a stand alone. If you fine tune your testing but also mix it with a trend follower i think it will improve the overall system performance a bit.

However, if someone has been able to make it profitable, please do enlighten us.

Chris,
Within the Bollinger Settings tab, look at your risk per trade. The default setting is .5% and that indeed puts on only tiny positions and makes it hard to have big results. If you put that figure to 2-5% range, you will have some significant moves.

Dan G.

It is worth having a look at the behavior of the stop loss in hopeful counter trend trades that turn into losers due to a breakout (rather than reversal) and the trend continuing against the counter trend trade direction.