Bollinger Counter trend - Help !

Discussions about the testing and simulation of mechanical trading systems using historical data and other methods. Trading Blox Customers should post Trading Blox specific questions in the Customer Support forum.
Post Reply
Chris67
Roundtable Knight
Roundtable Knight
Posts: 1052
Joined: Tue Dec 16, 2003 2:12 pm
Location: London

Bollinger Counter trend - Help !

Post by Chris67 »

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
William
Roundtable Knight
Roundtable Knight
Posts: 238
Joined: Sun May 04, 2003 4:41 pm
Location: Manhattan, New York

Post by William »

Chris,

I feel your pain. :wink: 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.
d-g
Roundtable Knight
Roundtable Knight
Posts: 290
Joined: Tue Apr 15, 2003 11:39 am

Post by d-g »

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.
damian
Roundtable Knight
Roundtable Knight
Posts: 815
Joined: Tue Apr 15, 2003 8:43 pm
Location: dusseldorf

Post by damian »

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.
Post Reply