Oct 11Liked by ππππ€ ππ¨π¬π‘π’, πππ ππ‘π
Hey Jack, as I've been following your signals channel, I've also been triangulating your signals other Ai/Data-driven algorithm such as the ones provided by eToro and a website called Danelfin.com. Interestingly, I see a high correlation between eToro and Danelfin but almost none with yours and just curious to know what sets your algorithm apart from the other two?
That is something to think about in the future (pun intended). Let's take a month and see how this works out for people. But, yes, I have plans to have several channels:
1. For only the strongest signals.
2. For day-traders.
3. For Forex.
4. For Small Caps.
I'm welcome to ideas. The system is infinitely scalable. If enough people want it I just have to get a higher API cap and upgrade the server.
My aim is to have the best signals platform on the Internet.
same day is fine. I think I could maybe create a second channel for people who are late, where you could put in the Ticker and a bot would query the Quant to see if the signal is still buy. Thanks for the idea.
I'm not designing this for high-frequency intra-day trading, but for mid-term trades(much different set up of strategy/indicators).
I want to try it simple to see how it works for all of us. Sorry, I just woke up and I worked 15 hours yesterday and this might not make so much sense, haha.
take profits are set at about +4*ATR so this is not very short term.
Oct 5Liked by ππππ€ ππ¨π¬π‘π’, πππ ππ‘π
Hi Jack - will you publish some back testing data on your models? My concern is itβs usually a question of averages - if there are 15 signals, I assume you need all 15 trades placed to be gain on average over time. You canβt just cherry pick here and there as you are taking the idiosyncratic risk of one stock rather than a mixed pool of them? Whatβs your view on this? Tks
Oct 5Β·edited Oct 5Liked by ππππ€ ππ¨π¬π‘π’, πππ ππ‘π
I guess this deserves a post on its own -- why is backtesting very overrated in your opinion?
To my understanding there's only 2 ways to assess the potential performance of your strategy -- backtesting and forward testing, in addition to optimization techniques.
Therefore, ignoring backtesting for assessing a strategy's performance probably (IMO) deserves a good justification (like "we used this in our hedge fund for years and it had a great X% annual performance, just as an example haha).
Hey Jack, as I've been following your signals channel, I've also been triangulating your signals other Ai/Data-driven algorithm such as the ones provided by eToro and a website called Danelfin.com. Interestingly, I see a high correlation between eToro and Danelfin but almost none with yours and just curious to know what sets your algorithm apart from the other two?
I'm certain their suggestions do not beat SPX. They say they do, but I would like to see a Monte Carlo simulation of that.
Jack, is the allocation 1% of portfolio value at risk, or 1% in the trade?
Example just to make sure Im asking clearly:
100K port value, 1% = $1000, Signal on SPY for 570 purchase, $520 stop loss. $570-$520=$50 risk.
Do I trade roughly 2 shares of SPY or 20 ($1000 / $50 per share risk)
I buy SPY for $1,000. Fractional shares.
Then I have $99k, another 1% signal comes up for, say, $AAPL, I buy $AAPL for $1,000.
thanks for the question!!
Jack can you also add futures signals to Telegram ( ES, NQ, RTY, YM, CL and GC)
That is something to think about in the future (pun intended). Let's take a month and see how this works out for people. But, yes, I have plans to have several channels:
1. For only the strongest signals.
2. For day-traders.
3. For Forex.
4. For Small Caps.
I'm welcome to ideas. The system is infinitely scalable. If enough people want it I just have to get a higher API cap and upgrade the server.
My aim is to have the best signals platform on the Internet.
thanks for the comment!
Thanks, Jack! What is the acceptable slippage after which it wouldn't be advisable to take the trade?
same day is fine. I think I could maybe create a second channel for people who are late, where you could put in the Ticker and a bot would query the Quant to see if the signal is still buy. Thanks for the idea.
I'm not designing this for high-frequency intra-day trading, but for mid-term trades(much different set up of strategy/indicators).
I want to try it simple to see how it works for all of us. Sorry, I just woke up and I worked 15 hours yesterday and this might not make so much sense, haha.
take profits are set at about +4*ATR so this is not very short term.
Hi Jack - will you publish some back testing data on your models? My concern is itβs usually a question of averages - if there are 15 signals, I assume you need all 15 trades placed to be gain on average over time. You canβt just cherry pick here and there as you are taking the idiosyncratic risk of one stock rather than a mixed pool of them? Whatβs your view on this? Tks
Backtesting is very overrated imo and we didn't use it much unless for HFT at my hedge fund.
if you only apply half of my signals and allocate small positions as indicated the result, over the long-run, will be very similar to using all signals. Why? I explained it in the post 2 days ago here: https://stockinsider.substack.com/i/149782433/the-law-of-large-numbers-and-trade-frequency
thank you for your comment, Tomas
I guess this deserves a post on its own -- why is backtesting very overrated in your opinion?
To my understanding there's only 2 ways to assess the potential performance of your strategy -- backtesting and forward testing, in addition to optimization techniques.
Therefore, ignoring backtesting for assessing a strategy's performance probably (IMO) deserves a good justification (like "we used this in our hedge fund for years and it had a great X% annual performance, just as an example haha).
This is true: we used this in our hedge fund for years and it had a great X% annual performance π
I cannot disclose certain things, so we will just live test the signals and I will report the performance of my signals, meticulously, as we go.
Jack, what's the average holding period you're targeting or is it until it hits either of the TP / SL limits we've put in place?
forever. the holding period is "kinda" included in TP/SL. it's very unlikely that you will hold that stock very long.