Strategies that Beat Buy and Hold
Author: Wparrish
Creation Date: 10/20/2018 6:10 PM
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Wparrish

#1
I am new to WLP and trying to grasp the many features. I have reviewed the pre-made strategies using Strategy Ranking and found a couple of Rotation Strategies that did beat the buy & hold. But these were the only ones I could find.

Can you lead me to find more pre-made strategies that beat the buy & hold?
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Eugene

#2
Hit Ctrl-O, then "Download...", make sure that "Download Public Strategies" is checked and "Published since" is not. This should get you a couple hundred more.

In general, don't forget that many strategies require to adjust their parameters to better fit the instrument or DataSet.
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superticker

#3
When I started using Wealth-Lab, I had the same problem. It would be nice if the strategies where ranked somehow to help identify the best ones when starting out. Also, remember:

1) A strategy that works well for one stock may work terrible for another. So there's a matching process step for matching up which stock should be paired up with each strategy.

2) The market sentiment may matter significantly for "some" strategies. For example, trading with a buy-high strategy in a falling market is pointless. You might want to start out using market neutral strategies.

3) Most of the strategies illustrated are simplified around a specific method. That's a plus when trying to understand that specific method, but a production strategy typically doubles down with a combination of good complimentary methods all pointing in the same direction. Jim Cramer (of Mad Money on CNBC) calls this confirmation. Cramer's comment is, "If you can't list three reasons to buy a stock, don't buy it." I'm not sure I look at it quite that way, but what one should do is formulate a composite score out of several complimentary methods, then trade around that composite score. And this takes time to develop.

I trade with one strategy, which I've been working on for 3 years. My thinking is that it's best to get one strategy working very well. But it has over 400 lines of code, 4 PV parameters, and calls over 18 indicators before reaching the trading FOR loop. It also calls some custom DLL library code, which contains my own indicators and common utility functions (that rarely change). My libraries have about 2000 lines of code collectively.

A fuzzy system programming problem is an open-ended problem. You are never done because there's no ideal solution that defines a final endpoint. You just keep whittling at it and constantly improving it over time. That's what it's all about. And it's that challenge that makes it fun.

Happy computing (& trading) to you.
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