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gold plateau in 2011 H4

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Christian Kretauer

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5 years ago #237186

Hello, in Juli – November 2011 there was an event that makes the H4, D1 strategies for gold in a few months an extremely high abnormal profit. Most of the developed strategies only look like a step.

For my strategy development, I chose the period from December 2011 until today and then evaluated the period before that in the backtest.
Is that the right way or which way would be better here?

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tomas262

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5 years ago #237196

Hello,

it is usually impossible for a single strategy to cover multiple types of market conditions and provide good and stable performance. Strategy that performs greatly in strong trends and moves tend to lose during sideways periods etc. SO it is always good to compare a strategy equity curve with underlying market (price chart) and compare how specific market conditions affected strategy performance in history. For a momentum/pro-trend strategy it is ideal if such strategy does not trade during sideways period at all. In this time it is good to have another strategy that in the other hand does not trade when the market is trending strongly. Having this approach allows to stay flexible even with simple and mechanical trading strategies. Markets are ever-changing but there are basically only two types of market condition – trending and non-trending (sideways) and it should be always considered

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