Ed Downs Elite    Posts: 645 Joined: 2/7/2007 Location: Austin, Texas  User Profile | We are testing Dynamic Entries and Exits, which incorporate a "Hard Switch" that Mark is referring to. Attached is my PDF that shows a specific Strategy before and after employing Dynamic Entries/Exits. The effect of "chopping off" trades when the curve goes against you and "re-entering" trades when it goes in your favor can be quite dramatic. The experiment I ran shows Draw Down reduced by half and CAR nearly doubled. See attached PDF for all the data. One last thing about this somewhat simple example - I used the very basic "Continuous Trend" filter on SPY to specify switching, NOT the Equity Curve. So, if Continuous Trend on SPY shows that the ETF is going down, it closes all trades and when it's going up, enters all trades that would be open. Note tha this has NOT yet been released. All of Mark's experiments have been done without the benefit of this little jewel. I can't wait until he and others get their hands on it. We are running weekend trading tests with this on our test server. Fingers are crossed that we can release it Monday.  Attached file : e1.jpg (43KB - 630 downloads) Attached file : e2.jpg (47KB - 641 downloads) Attached file : dynamic3.jpg (81KB - 628 downloads) |
