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Determine the type of strategies which SQ generated as you wish, Trend-following or Countertrending. And some suggestions to SQ4.

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eastpeace

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5 years ago #114132

Part 1 Generate the strategy of fixed type as your wish.

Part 2 Some suggestions for SQ.

 

Part 1

As we all know, there are three types of price movement, sideways, bull, bear markets. So we would like to make trend following strategy or countertrending strategy. If we run SQ starting from ‘Building Blocks directly, we can’â„¢t control the type of strs which SQ generated. Most of strs are trend following. If we want to control the strategy’â„¢s type, we need to start SQ from ‘Create strategy . ( Although we can also think all strategies are trend following. Some bull or bear markets in little time frame are sideways in bigger time frame. And some sideways markets in the big time frame, we could find trend in littler time frame. I don’â„¢t want to discuss the markets theory here. I just show you how to ‘control SQ, let it work as you wish. OR we can let SQ’â„¢s generation starts with some fixed rules.)

 

This is an example. The indicator KD(or Stoch), we can use it as a trend following indicator when we set parameters large. OR we can use is as a countertrending indicator if we set paras normal or little.

 

I want to make an anti-trend system based on KD.

 

1, Click the ‘Create strategy to create a base strategy of KD.

File: 1.png1.png

 

Then test the validity. (just set the long/short condition,orders or exit rules can be set blank if you don’t have more clear idea.)

 

We can find the created strategy in the ‘Retest strategies

File: 2.png2.png

 

2,Save the str and then load the str in the ‘Impove strategies.

File: 3.png3.png

 

And set the improve settings.

Entry Rules: add (generated randomly)

Order types: generated randomly

Exit Rules:add or replace (generated randomly)

Add some indicators that you want to make the str more refined, ADX for example here.

Some other setting is like ‘Building strategies. I think everyone is familiar with that.

Now let start the improve process!

 

3、My result.

KD system

File: 4.png4.png

 

Monte Carlo

File: 5.png5.png

File: 6.png6.png

 

other trend following str with customed indicator.

File: 7.png7.png

 

At last we can combine the trend-following and anti-trend system to a portolio.

 

 

Part 2.

I have stopped my living trading a few months ago. I have run four strategies generated by SQ on commodity futures and failed. So I stopped, and I need check what’â„¢s going wrong. Those strategies have less trades, and get a big sample error. But I still think SQ is an edge of strategy generating. I checked some strategies generated a few months ago, and found some are good in recent months, and others bad. I just need to learn how to use this software, especially how to choose the good ones from databank. I find something useful in the book ,<<Trading Systems and Methods >> (by Perry J. Kaufman, 5 edition ).

 

From that book, and combined with the experience these days, I have some suggestions for SQ.

 

1、the max period of indicators should have global values(just as “strategy options” setting in SQ3.8X), and every indicator should have their own custom period range, or fixed one value(Someone mentioned that ATR using a fixed value before. I agreed with him). So, every indicator can inherits the global setting, or customize their range, or have a fixed value.

 

2、Evolution could start with some base fixed rules. Not only form indicator elements. It’s like starting from the  “create strategy” in Part 1 above. But this setting in version3 is not very efficient. The improve process can only add other rules, the parameters in the main rules (fixed rules as begin) didn’â„¢t evolve.

 

3、Indicator could calculate indicator. I think that some signals, like ‘ highest(adx(20),10)> 80 and adx(20) cross below 70 are very useful.

 

4、Backtracking of indicator’â„¢s value.  To generate some rules like, EMA(10)>EMA(10)[1] and EMA(10)[1]>EMA(10)[2]. Now I find only price(O,H,L,C) could do this calculation.

 

5、Some other expectations.

         a. Custom indicators could be imported from MC/TS/NT, or could be scripted in SQ. And if  it is scripted, it’â„¢s better that it could print the indicator’â„¢s value for verification.

         b. SQ could convert the 1min data to other time frame automatically, for TS/MC/NT data type, not only for MT4. And it can give us more freedom, such 2 minutes, 3 minutes, 10 minutes, 2 hours as our wish.

         c. Could SQ Team let us know the process of SQ4’â„¢s development? SQ3.8.1 could work, but is not powerful. And some functions are not very perfect. I am a loyal user of SQ, and hope SQ4 would come to us earlier.

 

 

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geektrader

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5 years ago #132352

Good article, nice work!

 

And yes, as far as what I heard from Mark, ALL your points can be done like this in SQ4.

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Bigape

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5 years ago #132355

Hi Eastpeace, great 3D!

 

 
I hope to become a good starting point for a “rich” discussion
 
Regards

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