Trendfollowing requires a lot of capital. Small accounts are better off with more active high win rate strategies like mean reversion, patterns, and intraday seasonality
they are excellent vehicles to grow your account. Forex usually are pushed with high leverage, if you can be discipline to stay under 15:1 then you should be fine and it will be like micro futures. shoot for daily time frame, if really pushed then maybe H4, anything lower and you are in noise territory and you have to do a lot more just to get same rewards.
@@StatOasis Thank you for the insights. Can you recommend a ForEx broker for US citizens? I appreciate you taking the time to respond. I hope your channel grows.✨
Hi there I’ve read Andreas Clenow Following the Trend: Diversified Managed Futures Trading Which actually says the same - he suggested to start with at least 50 markets . Less than that - game of luck.
So I don’t understand exactly why you can’t apply the turtle system to one market, say crude oil, and make money? Why you must have large liquidity in your account? And what about applying the system to a micro oil contract? But more importantly, why do you say it’s necessary to be trading multiple markets to be successful?
Trends don’t happen all the time (less than 20%) so if you trade one or few markets then your performance will be highly dependent on luck. You need many markets (therefore lots of capital) to increase the probability of catching multiple trends.
Hey Ali, thanks for your videos! Series idea: Multicharts tutorials and how-to videos i.e. Quote manager, portfolio trader, matrix optimization, how map tradestation data feed with IBK as broker ETC cheers from Canada
Enjoy the videos. I was trying to find videos you mentioned once before to determine if a market is trending vs mean reverting etc. Could you point me in the right direction? thank you
I don't remember I posted an exclusive video about it, but I do mention it in some videos. Indexes usually are mean reverting long edge. I teach how to do it in the Algo Trading Masterclass go.statoasis.com/atm but you can have an idea from measuring the noise in each market, by using ADX for example
I've seen some entries and exits on the same bar... since we are in hourly timeframe, maybe this can't be a problem... but in most cases, a backtest that has same candle entry/exits cannot be perfectly reliable
I don't remember this, but usually look inside bar at 1 minute resolution and 2ATR stop loss profit target should solve most issues. of course a detailed look is needed or even test on lower timeframe while logic is implemented on higher timeframe.
Thank you for the clarification i just learn its not a great idea for me to trade a trend following system. Thats probably why ive struggled to be profitable, so what system should i trade to make some extra cash on a monthly basis?
If you are looking for a Trading idea the trend following is the best & only idea. By trading I mean that the trade is of a shorter duration. Other strategies you can use is Swing Trading or Mean reversion trading( 2 to 3 weeks) OR you can do value investing.
for active trading, you can use breakouts or mean reversion (holding intraday or 1-7 days), but for low maintenance investing, I suggest you switch to monthly portfolios (they trade once a month or less),, something like Ray Dalio all weather portfolio. I have three of those in StatOasis Discord server, there is a video about them here ko-fi.com/post/Monthly-Portfolio-W7W6DEA85
Hello Ali, are you using Multicharts / powerlanguage in this video? I am considering purchasing lifetime license thanks to your review. Cant wait til your course began!
With slippage $10 and commission $2.5, this strategy (with settings 35, 15, 1000, 15, 30 and 180 minute bars) loses $45000 between 070101 and 220628 (biggest drawdown is over $70000 in november 2012). Backtested in Tradestation on the @CL symbol.
Although I am using Multicharts, but with Tradestation data with intraday 1 minute magnifier and $25 per trade slippage/commission, so you should get the same results using my code. I posted screen shots in the community tab, check them out
@@StatOasis Alright. I added "look inside bar" (1 minute) and the results are better now, but still a long way from a home run. Profit factor of 1.10, a max dd of $20000 and a total net profit of $56000, mostly from short trades.
Hi Ali, what data resolution are you using in this video, 1m, 1s, tick, other? I'm using 1m and testing using TradeStation, and I cannot match my results with yours. Thank you.
watch more trend following strategies: th-cam.com/video/E_dNDBeIEIo/w-d-xo.html
Thanks again ali I saw all vide in your amizing channel
thank you for watching
Thank you for sharing. It makes a lot of sense that a 35% win rate simply cannot provide a consistent profit on one market.
Trendfollowing requires a lot of capital. Small accounts are better off with more active high win rate strategies like mean reversion, patterns, and intraday seasonality
@@StatOasis I'll have to consider your advice. What about micros and ForEx?
they are excellent vehicles to grow your account. Forex usually are pushed with high leverage, if you can be discipline to stay under 15:1 then you should be fine and it will be like micro futures.
shoot for daily time frame, if really pushed then maybe H4, anything lower and you are in noise territory and you have to do a lot more just to get same rewards.
@@StatOasis Thank you for the insights. Can you recommend a ForEx broker for US citizens?
I appreciate you taking the time to respond. I hope your channel grows.✨
Hi there
I’ve read
Andreas Clenow
Following the Trend: Diversified Managed Futures Trading
Which actually says the same - he suggested to start with at least 50 markets . Less than that - game of luck.
Yes, great book, he reverse engineer the logic of many hedge funds using simple trend following rules
So I don’t understand exactly why you can’t apply the turtle system to one market, say crude oil, and make money? Why you must have large liquidity in your account? And what about applying the system to a micro oil contract? But more importantly, why do you say it’s necessary to be trading multiple markets to be successful?
Trends don’t happen all the time (less than 20%) so if you trade one or few markets then your performance will be highly dependent on luck. You need many markets (therefore lots of capital) to increase the probability of catching multiple trends.
Hey Ali, thanks for your videos!
Series idea: Multicharts tutorials and how-to videos
i.e. Quote manager, portfolio trader, matrix optimization, how map tradestation data feed with IBK as broker ETC
cheers from Canada
Thanks for the idea! will try to incorporate.
Enjoy the videos. I was trying to find videos you mentioned once before to determine if a market is trending vs mean reverting etc. Could you point me in the right direction? thank you
I don't remember I posted an exclusive video about it, but I do mention it in some videos. Indexes usually are mean reverting long edge.
I teach how to do it in the Algo Trading Masterclass go.statoasis.com/atm
but you can have an idea from measuring the noise in each market, by using ADX for example
I've seen some entries and exits on the same bar... since we are in hourly timeframe, maybe this can't be a problem... but in most cases, a backtest that has same candle entry/exits cannot be perfectly reliable
I don't remember this, but usually look inside bar at 1 minute resolution and 2ATR stop loss profit target should solve most issues.
of course a detailed look is needed or even test on lower timeframe while logic is implemented on higher timeframe.
Thank you for the clarification i just learn its not a great idea for me to trade a trend following system. Thats probably why ive struggled to be profitable, so what system should i trade to make some extra cash on a monthly basis?
If you are looking for a Trading idea the trend following is the best & only idea. By trading I mean that the trade is of a shorter duration. Other strategies you can use is Swing Trading or Mean reversion trading( 2 to 3 weeks) OR you can do value investing.
for active trading, you can use breakouts or mean reversion (holding intraday or 1-7 days), but for low maintenance investing, I suggest you switch to monthly portfolios (they trade once a month or less),, something like Ray Dalio all weather portfolio.
I have three of those in StatOasis Discord server, there is a video about them here ko-fi.com/post/Monthly-Portfolio-W7W6DEA85
Hi Ali thanks for your effort pleas do your code in SQ if it is possible
no problem, will post it in the free download channel in StatOasis discord server
Hello Ali, are you using Multicharts / powerlanguage in this video? I am considering purchasing lifetime license thanks to your review. Cant wait til your course began!
Yes, Multicharts have up to 50% off sale today
@@StatOasis Sir, I am looking forward to your ATM course to open up than Multicharts discount haha.
:-)
With slippage $10 and commission $2.5, this strategy (with settings 35, 15, 1000, 15, 30 and 180 minute bars) loses $45000 between 070101 and 220628 (biggest drawdown is over $70000 in november 2012). Backtested in Tradestation on the @CL symbol.
With that said. There are other ways to make this strategy really profitable. You just have to tinker a bit with it. 🙂
Although I am using Multicharts, but with Tradestation data with intraday 1 minute magnifier and $25 per trade slippage/commission, so you should get the same results using my code. I posted screen shots in the community tab, check them out
@@StatOasis Very strange. My slippage was also $25 per round turn.
@@StatOasis Alright. I added "look inside bar" (1 minute) and the results are better now, but still a long way from a home run. Profit factor of 1.10, a max dd of $20000 and a total net profit of $56000, mostly from short trades.
Hey Ali, do you use this system in your portfolio?
I use alternate versions of many of the systems on the channel
Hi Ali, what data resolution are you using in this video, 1m, 1s, tick, other? I'm using 1m and testing using TradeStation, and I cannot match my results with yours. Thank you.
probably you skipped a lot, crude oil is H3
Hello, does this sytem work for currencies (fx) ? Regards
Yes, start with Japanese yen /USD
@@StatOasis Is that because those two currencies are likely more stable? What's makes JPY/USD more of a trend symbol than other fx pairs?
no, but USD/JPY have an edge in breakout/trendfollowing
Hi Ali, please write the code for sqx algo wizard👍
no problem, will post it in the free download channel in StatOasis discord server
woah. pretty glad I stubbled here
Welcome aboard 😊