Been backtesting the ADX - found this out - the best way to set ur threshold line is the average on the peaks and valleys of the ADX line? Dunno, give it a try, let me know your thoughts - Noah O
Over the years, I've heard a handful of experienced traders say that ATR (Average True Range) is their main indicator. Please let us know if you've found any improvement in your work. I benefit from your work & appreciate you, Jarrod :) Thanks!
I believe the macd with rsi is a better combination at 70 rsi buys and 30 rsi sells...the adx seems good as well, but only when the adx is above 25. In squeezes, the cross of the DI lines is a confirmation of the direction...
@@TheTransparentTrader Yes indeed. And the way you carry out your back test is quite scientific (Permit my grammar). The idea of optimising the system, then testing it on the 2+ years or so data. It truly shows the efficacy of the trading systems. I hope to learn much more from you. Thank you
Well, what you do here is curve fitting. It is always possible to tweak indicator parameters to achieve nearly perfect equity curves in the past. 99.9% of this kind of strategies will fail during forward tests very quickly though.
This is not always the case. I had a strategy ROCEMATrend that worked for 4 yeasr 2004 - 2008. Then in the financial crises it stopped working. (Due to volatility)
Hello brother - love your work! 👏 keep up the good work - had a question for you - is the 8-9 look back candles/bars on ADX line the same as applying a 8-9 period MA on it? Would love your feed back - Thk u in advance - Noah O.
Hi my friend. Just wanted to tell you your question shows you’re not in the right path in system development. If you are not interested to learn the proper development process I strongly advise you to pursue another career. Cheers
would you ever think about doing a video for a daytrading strategy using the eminis or the micro eminis with parameters of a challenge parameters for a remote prop
I tested ADX as volume/volatility indicator. It lags heavily and I have to adjust the level on different pairs which is a pain in the ass. Looking for something else that doesn't lag as much.
Hi. Can you please explain why all these strategies only work on a couple of pairs out of 30 frequently traded pairs? My thought: lucky overfitting. How am I wrong?
We've not seen any backtest on multiple pairs, in some of his prior videos, he explains how he uses 20ema on equity curve, to know when to shutdown the algo. I guess if you diversify with enough different algo's and change them when they stops to being profitable, it could work. Trend,reversal,scalp,swing If he was genuine, he wouldnt sell courses and remove yt comments.
Hi i am finding all those videos interesting and this one in particular ..it would be terribly interesting and informative if you could do a series of videos on how to test a strategy like you did, where you get the data to test , how to, how you build your excel spreadsheet ( just like a pro systematic trading ) etc..the formula etc...very useful and subscribed ,-)
@@TheTransparentTrader If it is indeed what I was missing, how to build that database, what is the software for the analysis and to be able to know what was the best time to buy or sell. Excellent video is the first time I see one like this.
Please, explain the ADX lookback to. I am completely lost. Is that the +DI > -DI and vise vasa I guess what I am trying to understand is how do you represent your ADX for the lookback to? Never heard of that before
I got lost. Are you saying you only trade signals when ADX goes up, and ignore when it goes down? I am not in support of your RSI strategy because markets are not forever on overbought and oversold. I introduced a second RSI, that looks for uptrend and downtrend. The other one is an entry points
Hi Jarrod Your systems are good but do not take into consideration the fact that most retail traders have a small amount of capital - GBP 300 to 500 and with stop losses of 200 and more even trading with 0.01 the lowest amount they would be wiped out or be stopped from trading by the Broker. Why not try testing that if the trade goes against the trade opened - to open a trade opposite to the original one which would reduce the loss. Try on 20pips or 30 pips or 50 pips. Keep in mind also that most traders use lower time frames like M30 to H1. Please test that on the EURUSD and GBPUSD. THx in anticipation. Micha'el
Hi Michael, I have tested ideas like that before and they've always underperformed. I understand your comment about smaller accounts. I create strategies which work the best regardless of the stop loss. So if a strategy needs a 200 pip stop loss then so be it. I rarely have strategies which use stop losses less than 100 pips. I can clearly see when testing / optimising that stop losses < 100 generally decrease the performance of the strategy. My type of strategy anyway..
Just for my clarity. The presenter is stating when RSI crosses over into “ over bought” territory above 70 that that iscan entry signal? That seems to be opposite of most others. Bare with me, I am new to RSI. Isnt above 70 overbought territory?
Yes above 70 is overbought. But GBP/JPY on a 4 hour chart responds well to buying into strength (overbought) and selling into weakness (oversold). I hope that answers your question.
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Hope you enjoy this one guys!
Been backtesting the ADX - found this out - the best way to set ur threshold line is the average on the peaks and valleys of the ADX line? Dunno, give it a try, let me know your thoughts - Noah O
Yes, thanks ❤
I love the way you teach to the point and with examples. feel it is something tested shown before bringing it foward
really like the simplicity of this, thank you Jarrod
Dziękujemy.
Excellent Tie Jarrod! Thank you for your informative charts as always. 📈
Pleased you liked it 😉
Excellent analysis, Jarrod!
Useful video. Thank you.
Over the years, I've heard a handful of experienced traders say that ATR (Average True Range) is their main indicator. Please let us know if you've found any improvement in your work. I benefit from your work & appreciate you, Jarrod :) Thanks!
I believe the macd with rsi is a better combination at 70 rsi buys and 30 rsi sells...the adx seems good as well, but only when the adx is above 25. In squeezes, the cross of the DI lines is a confirmation of the direction...
Thank you for making these videos, watching them has given me different perspective on using indicators for designing my Algos systems.
That's what they are intended for. I hope you can pick up some useful ideas!
@@TheTransparentTrader Yes indeed. And the way you carry out your back test is quite scientific (Permit my grammar). The idea of optimising the system, then testing it on the 2+ years or so data. It truly shows the efficacy of the trading systems. I hope to learn much more from you. Thank you
@@hamzavictor2385 I like to have a "process" to developing a system.
Quite informative. Thank you for making this video. Would request you to make some videos on forex scanners and fundamental analysis in the future.
Cool looking suit. Great information flow.
SUPERP!!! Do you have allready spoken about making custom futures for better backtesting results?
Well, what you do here is curve fitting. It is always possible to tweak indicator parameters to achieve nearly perfect equity curves in the past. 99.9% of this kind of strategies will fail during forward tests very quickly though.
This is not always the case. I had a strategy ROCEMATrend that worked for 4 yeasr 2004 - 2008. Then in the financial crises it stopped working. (Due to volatility)
Sir ,you should explain more on how adx works .. btw thanks nice video
Nice brother does it also work in indian market nifty.
Hello brother - love your work! 👏 keep up the good work - had a question for you - is the 8-9 look back candles/bars on ADX line the same as applying a 8-9 period MA on it? Would love your feed back - Thk u in advance - Noah O.
Hi thanks for the video, finally what period setting is the best for ADX?
Hi my friend. Just wanted to tell you your question shows you’re not in the right path in system development. If you are not interested to learn the proper development process I strongly advise you to pursue another career. Cheers
Can you do a video on how to backtest these mean reversion systems properly with multichart
Sure. Thanks for the suggestion.
would you ever think about doing a video for a daytrading strategy using the eminis or the micro eminis with parameters of a challenge parameters for a remote prop
RSI work great on Sidwind mkt. will sarcastic rsi work better on trending mkt ??
I tested ADX as volume/volatility indicator. It lags heavily and I have to adjust the level on different pairs which is a pain in the ass. Looking for something else that doesn't lag as much.
Hi. Can you please explain why all these strategies only work on a couple of pairs out of 30 frequently traded pairs? My thought: lucky overfitting. How am I wrong?
We've not seen any backtest on multiple pairs, in some of his prior videos, he explains how he uses 20ema on equity curve, to know when to shutdown the algo.
I guess if you diversify with enough different algo's and change them when they stops to being profitable, it could work. Trend,reversal,scalp,swing
If he was genuine, he wouldnt sell courses and remove yt comments.
Hi i am finding all those videos interesting and this one in particular ..it would be terribly interesting and informative if you could do a series of videos on how to test a strategy like you did, where you get the data to test , how to, how you build your excel spreadsheet ( just like a pro systematic trading ) etc..the formula etc...very useful and subscribed ,-)
OK, great idea!
@@TheTransparentTrader If it is indeed what I was missing, how to build that database, what is the software for the analysis and to be able to know what was the best time to buy or sell. Excellent video is the first time I see one like this.
hi sifu, may i know the model of macbook you use?
Nice ❤
How do I scan for this or do I have to manually check every pair on every timeframe to see if the RSI and the ADX meets these parameters?
I hve one querry, do u mean if we use RSI 14 and ADX 9 could give us more yield
Can be used to stocks ?
You'd have to test on stocks yourself as I don't currently trade stocks.
Please, explain the ADX lookback to. I am completely lost. Is that the +DI > -DI and vise vasa
I guess what I am trying to understand is how do you represent your ADX for the lookback to? Never heard of that before
I got lost. Are you saying you only trade signals when ADX goes up, and ignore when it goes down?
I am not in support of your RSI strategy because markets are not forever on overbought and oversold. I introduced a second RSI, that looks for uptrend and downtrend. The other one is an entry points
If you wanna blow up your account, use this strategy.
Ok. You are driving me crazy now. Did I hear you say 420 pips Stop Loss, or you meant to say 420 points
Hi Jarrod
Your systems are good but do not take into consideration the fact that most retail traders have a small amount of capital - GBP 300 to 500 and with stop losses of 200 and more even trading with 0.01 the lowest amount they would be wiped out or be stopped from trading by the Broker. Why not try testing that if the trade goes against the trade opened - to open a trade opposite to the original one which would reduce the loss. Try on 20pips or 30 pips or 50 pips. Keep in mind also that most traders use lower time frames like M30 to H1. Please test that on the EURUSD and GBPUSD. THx in anticipation.
Micha'el
Hi Michael, I have tested ideas like that before and they've always underperformed. I understand your comment about smaller accounts. I create strategies which work the best regardless of the stop loss. So if a strategy needs a 200 pip stop loss then so be it. I rarely have strategies which use stop losses less than 100 pips.
I can clearly see when testing / optimising that stop losses < 100 generally decrease the performance of the strategy. My type of strategy anyway..
Just for my clarity. The presenter is stating when RSI crosses over into “ over bought” territory above 70 that that iscan entry signal? That seems to be opposite of most others. Bare with me, I am new to RSI. Isnt above 70 overbought territory?
Yes above 70 is overbought. But GBP/JPY on a 4 hour chart responds well to buying into strength (overbought) and selling into weakness (oversold). I hope that answers your question.
interesting , he is panicking a bit.
You may be good but people watching on mobile phone couldn't make head and tail of it
How could I make it easier for viewing on a phone?