VIOP STRATEGIES
Let's examine the strategies for the next process in the VIop, more precisely in the index term. By strategy, I mean the trading systems that are part of the strategy. There is an important issue that I have to point out at first. The reason these strategies are put here is not just use these strategies and make money with them. These are examples. It is up to you to use or develop the same. The profit or loss that may occur after its use belongs to the user. However, let me write it in red and capital letters "SAMPLE".
I will examine and share the strategies on two different data terminals. It is the most used matrix and ideal on the market right now. Both have good and bad sides to them. I know since I use both actively. My goal is not to advertise any data terminal.
Among the strategies, there will be very simple very complex ones. It is useful to examine the ney, where and why it was written in detail.
Now let's move forward gradually by creating the systems from the simplest using the matrix and ideal. This page will be a little longer than the others because we will go by examining the systems of different structures. New strategies will be added to the end of the page as they are written. I will add the matrix and ideal files in the section that belongs to each system.
STRATEGIES
Strategy-1-
In this strategy, we will use two simple moving averages. Recently, we will use the moving average as it is a trend in the market we are in, which has already earned in the short term. Let's see what he's done in the long run. It is written using the system and the exponential averages of 50 periods.
You can watch the following videos about moving averages that I have prepared before.
VIDEO 1
VIDEO 2
Take the average of 5 periods within the system to be above the average of 50 periods. Be under the sell rule.
When we test it in the matrix system tester, the following result is obtained.
CLICK to download the file version of the system . After downloading, extract it from the rar file. You can load the system tester into the matrix from the get system button.
The screen shot of the system is as follows.

As seen in the chart, it got good points in trending regions. But on the horizontal, the moving averages failed as usual.
The test results of the system are as follows.


Approximately in the last 4 months, it has earned 16 thousand points. Now let's test the same trading rule on the ideal with 10 years of data in one. If we started to use this system ten years ago, which gave us 16 thousand points in the last 4 months, what would it be like? Pay attention, I am not saying there is a problem with the matrix calculation etc. I say what would happen in a long time.
CLICK to download the system as a file .
After downloading, you will save it in the chartsystem folder within the folder where the ideal is installed.
If we had used this system for ten years (from 11.06.2007. I have the data until that date. I say round account ten years). We were going to do 8707 transactions. While the score we achieved without slipping and deducting the commission would be 389 thousand points, our net score would be -219 thousand points after a 35-point shift and commission.
Here the commission is the commission you pay to the brokerage institution and it is accepted as approximately one in ten thousand. Slippage is the difference between the signal that occurs in your system and the price it takes when you send the order to the market. If the signal comes from 121.000, it can happen from 121.025 or 120.975 or 121.050 when you send the order to the market. In other words, it can reflect positively or negatively. That's why slippage and commission are calculated as 35 points per transaction. (This slip and the commission are very talked about. It seems insignificant, but it is important.)
The number of winning trades on the chart, the number of losing trades, the risk earning rate etc. Available with information.
The main point I want to draw attention to is this. You write a system and test it in 4 months. (It doesn't matter if it is matrix or ideal here. Normally, there is no data for 10 years. I provided it myself. Maybe there is a way to test it for ten years in the matrix. There were friends who tested it. I do test within my possibilities.) And you make the mistake of fitting an indicator for the price. Good points come out. But in ten years you have been hurt. Well, the index value at that time is different and now different, I do not enter into discussions about points, earnings, TL value, etc. I look at the event as points won or lost.
Now, let's create a new system by adding stop, stop, re-entry condition to the same system. You can create new systems by changing the content of formula patterns here.
In the system, 1500 points of stop and trailing stop were used. Take profit of 4500 points is used. As the re-entry method, the position of the exponential average of 5 periods relative to the previous value was chosen. If the exponential average of 5 periods is greater than the previous value and the system is in the al position, the long position will be taken again. Conversely, it is valid for short positions. Let's see if something has changed.
CLICK to download the system .

It seems to be worse. The number of transactions has increased. There is no positive development in the score. So what could happen if we change the trailing stop and take profit score, play with the period of the moving averages. We hit the road with an exponential average of 5 and 50. The issue is gradually moving towards fitting price indicators. Are you aware?
In the first strategy, we tested a simple system and didn't get a workable result. Continue the system development process.
Strategy-2-
In this strategy we will use macd, rsi, moving average, dema. I am not writing here because you will see the formula contents when uploading the systems to the matrix.
Click to download the system as a file.
System performance is as follows.

Approximately in the last 4 months, it has earned 21 thousand points.
Risk earning ratio is 2.23. In other words, he earned 2.23 unit points for each unit he lost. This ratio of 2.5 and above is likely to be desired.
The screen shot of the system is as follows.

Now let's try the same system ideally. Let's see what the result would be if we had used it for 10 years.
CLICK to download the ideal system file.
The screen shot of the system is as follows.

If we had used our system, which earned 21 thousand points in the last 4 months, for 10 years, we would have gained 360 thousand points. The number of transactions was calculated as 4915. When we deduct the slippage and commission here, we have 16 thousand points left. The stone we throw does not scare the frog.
If we put a stop-tracking stop in the system, how would the results change? Let's see.
In the system, 900 points were used as stop and trailing stop, and 3500 points as take profit.
Click to download as system
The system image is as follows. System data are shown on the graphic.

If we look at the data, when we say that we will make eyebrows, we not only pulled an eye but also plucked it from the ear. The system had earned at least 16 thousand points before, but now it has gone negative with -56 thousand points.
However, we saw it as a very successful system in 4 months in the matrix. According to these data, it should not be used.
We shared two sample systems and found that they didn't work. Why did you share them well? The systems we wrote by using a few indicators or increasing the number of indicators failed in both data terminals. "Are you kidding us"? Or is it an urban legend that they could not end up praising this algorithm?
First of all, please read the following articles I have published on algorithmic trading before.
What are we trying to explain in the examples I gave above so far?
1- Do not use a system without testing it for a long time? Or the data set you are testing covers a long period. As can be seen, a system that is successful in the short term can fail in the long run. Whatever you put in the system, it does not matter whether a stop or a trailing stop.
2- The components you use in the system are important. Each indicator is calculated from the price. Using one, two, three or all of the 6 data obtained from the price (opening-closing-highest-lowest-volatility-volume). Indicators are classified as oversold, trend, momentum-power, volume indicators. (There are some who make this classification in different ways. Since it is not our subject, I do not go into details.)
Using a few indicators from the same family in the system will only slow down your system. It makes it more complicated. There is no point in using indicators from the same family if they do not have a distinctive feature on their own. For example, RSI, stochastic, W% R is an overbought indicator for three. It fluctuates in a given area as an oscillator. Now the stochastic is less noisy than the RSI and W% R, so it moves heavier. But W% R is both stochastic and extremely choppy and noisy with respect to RSI. Which one will we use? While building the system, which of these indicators are distinguished by their own structures and which suits your system structure logic? Maybe you should use all three. You are the best decision maker. So here are the indicators we need to know. How they behave, how they move, what side of the price they show us.
3- The stop and trailing stop methods you use in the system must be suitable for the structure of your system. The stop and the trailing stop distance should be according to your risk appetite. In other words, you need to use stops that are suitable for the system and suitable for your risk appetite. There will be forty foxes, but forty tails are in the air and will not touch each other. It's that simple.
Now let's look at both the matrix and ideal data of a system that I use individually. These are just examples. Do not forget.
The performance in the matrix is as follows.

The system has gained 21 thousand points in about 4 months. Well okay. The risk-to-pay ratio is 2.21. Not bad, but it would be better if it was over 2.5, as I mentioned above. When we look at the transactions, it has made 93 transactions. 38 of these transactions were profitable and 55 of them were harmful. Not so good.
Now let's take a look at ten years of tests.

The number of transactions in ten years is 2644. While 785 thousand points were earned, 600 thousand points remained after slipping and coalition. Risk-earning ratio 1.94.
If the number of transactions decreases even more, it will be a good system. It is necessary to increase the risk-earning ratio. It was to show that this system could be the reason I shared data.
I use the above system individually. I'll throw a few more samples that are in the testing phase.

High maxdd on low transaction counts, which I could not solve on these systems. Slip-commission showing an increase in high transaction numbers. It dissolves in time. There are friends who give different ideas, but my current software knowledge is not enough to solve them.
We will continue the system creation process.
It will either be the continuation of this article or it will be added to the site as the 4th. Since I was a little tired, the mistakes increased. I will continue tomorrow or in the week.
Continuation is being prepared ......
Ali Erkan TANACIOĞLU
AUTHOR:
“Investment information, comments and recommendations contained herein are not within the scope of investment consultancy.
Investment consultancy service; It is offered within the framework of an investment consultancy agreement to be signed between brokerage houses, portfolio management companies, banks that do not accept deposits and the customer.
The ratings contained herein are based on comments and personal opinions. These views may not be suitable for your financial situation and risk and return preferences.
Therefore, making an investment decision based solely on the information contained herein may not produce results in line with your expectations. "
