Jim Dean Elite   Posts: 1059 Joined: 10/11/2012 Location: L'ville, GA  User Profile | There are MANY facets to Risk control and Money management (MMRC) ... we've only scratched the surface thus far and I'm "holding back" on posting a bunch of requests about this ... will do so once OVest is rolling along more smoothly. However my recent posts about the "EVG" (Equity/Volatility-Gap) stop are actually FOUNDATIONAL to many of the other more robust MMRC methods. So I really hope that one will get plugged in soon: http://www.omnitrader.com/currentclients/omnivestforum/thread-view.asp?threadid=4009 I mentioned briefly in that post that the EVG could be taken all the way down to the Strategy level but that imho at that level something different is needed. THE SIMPLE thing that could be done AT THIS POINT would be to allow the user to apply the EVG at the Strat level (in conjunction with the option of applying it at Portfolio &/or Accounts level with different settings). If this is done, then I believe you should offer it with the four inputs described here: http://www.omnitrader.com/currentclients/omnivestforum/thread-view.asp?threadid=4004 ... PLUS one more input: 5. dropdown box or radio buttons to use the EVG stop WITH the existing Strategy stops, or INSTEAD OF the existing strategy stops. ==== I'm calling this the "simple first step" since I think that down the line there is room in OVest for a SEPARATE TIER of selection options ... that is, allow the user to MIX AND MATCH different Strategies (ie System, Performance, Vote, Filter, Confirm) to define ENTRIES, and then optionally allow them to choose from a healthy list of alternative EXITS that would either override or parallel the native exits in the Strategies. Each Exit choice would have its own description, and statistics could be generated for it by using 2-3 "straw man" Entries: 1. an "ideal Pivot Point entry", much like NPP for exits, would be the best 2. a simple TREND entry system that generates lots of signals but is filtered to avoid bear markets and extended consolidation periods. 3. a simple SWING-TRADING entry system that generates signals during NON-trendy markets. With those three "straw-man entry" baselines, the various Exit options could be presented on Equity curves with statistics, etc to help the user select the one(s) to use for the "real" strategies. And of course once the Entry and Exit methods are chosen, a custom Equity curve could be created. This is clearly a "Future Enhancement" request, but I'm posting here in the Risk Control section since it is right at the CORE of risk control. ===== But, as I said earlier, a SIMPLE IMMEDIATE option would be to just offer the EVG stop as a replacement or companion to the native strategy stop ... ideally with the ability to see how the equity curve looks with it in force (along with any Portfolio and Account level EVG exits). Thanks | |
