Is it better to trade one system or a combination strategy?
Author: mikesblack
Creation Date: 3/8/2016 11:08 PM
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mikesblack

#1
What is a good ratio of systems traded at one time. The ratio of added complexity and time vs the added diversification and "smoother equity curve.

I also wonder if using the combined strategies implementation may be a good resource for this job. It seems hard to adjust the ratios per trading system so that each system is matched semi equally in return of funds. Any hints or tips for this?

Thanks i.a..
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abegy

#2
Hi mikesblack,

With my experience, I recommend you to trade several trading system (3 or 4). If you trade only one, you take the risk to have a bankrupt if you don't detect correctly the end life of your strategy (market conditions are changing at anytime).

I see in one of your past post that you used to trade a dip buyer strategy. Trading several strategies are interesting only if you mix trading Technics together (one dip buyer, one trend following...).

But you will be face to the problem of how to have the best capital allocation strategy per strategy. Unfortunately, I haven't find a way with WLD (or another trading software) to solve the equation. Normally, to do this, you need to use the concept of the efficient frontier.

http://www.wealth-lab.com/Forum/Posts/Efficient-Frontier-37991

I have seen that you have looked to have a tutor in a past post. I can share my trading experience if you want.
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mikesblack

#3
abegy,
I appreciate your advice. Also, looking forward to reading the article.

I am trying to understand many aspects of WealthLab. I do have a descent background in C Sharp and slowly, by example am becoming more fluent. I would like to write a position sizer that incorporates market sectors so I won't load the boat with one or two related sectors, as what has happened to me in the energies the past couple of years. Is this something that you can help with.

Also, let me know a fair rate of compensation of your time. Also do you wish to use Team Viewer etc when and if need be?
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