Funny....just saw the video you referenced and cmmented there that back testing was needed. Thank you for your thorough analysis. It's crazy how many people are here making claims they don't back up with thousands of people thanking them!
Bravo master!!!! First youtube channel that i see that taks about backtesting repainting indicators, and how they look amazing in back testing, but not so much in real life...
Thank you very much for this video. Could I ask to test 3 variables on the back test using the repainted version? 1 - R:R 1:2, 2 - the stop lost set up as a trailing stop based on the percentage instead of a fixed value, and 3 - lastly using a daily time frame? Thank you in advance.
Interesting video. I use that with Price channels. Normally if it touches the high I sell and if it hits the bottom i'll be looking to buy. I think that adds a parameter that helps vs the indicator by itself.
Just subscribed! My advice: For small time frames, target the match with the higher time frame so you can profit from the trend. Sometimes there are trend changes and these kind of changes start from the smallest time frames which means sometimes this strategy won't work but it eventually will when higher time frame trend changes...
Oh my. I was growing tired of the other Tradestation "testers" on RUclips not automating their backtests with algorithmically exact bots. You've got a new subscriber today, good sir.
Need to test this on my more pairs. There are some astounding results available from this indicator using the right pair on the right TF and some form of momentum indicator
Hey please can you share a code that can help make the alerts print only opposite signals. so if last signal was buy, wait for the sell to print next signal/alert. ty.
Good day! I use the Nadaraya Envelope in my trading strategy. Can I suggest to you another way to test it? But It would take 2 indicators rather than the Nadaraya only. 15 min Default Nadaraya Default Bollinger Bands When price touches Both the Bands and the Nadaraya, take a trade with a fixed TP and SL. I hope you try this one!
Does somebody know how to check in pine script if a candle has closed outside of the envelope and prev candle has a signal printed? any help is appreciated! thx
Uma duvida em português... Please... !!! Este indicador fica repintando quando as bandas superiores e inferiores ficam alterando de posição, tem alguma estratégia que pode ser usado, pois quando se coloca no replay fica evidente a alteração do indicador em relação ao BackTest realizado com o gráfico no passado... Abc... !!!
Try this strategy on range bars instead of candlesticks. Try 80R range bars for NQ and 20R range bars for YM. I guess that will give you better results.
For common indicators, like MACD, EMA, RSI and such, I typically use this library that works with pandas... github.com/peerchemist/finta But for less common indicators or special situations then I code it myself
I studied this indicator with combinations for months, I find if you take the middle line and use a linear regression or some other type of moving average, that you can create a pretty solid confirmation indicator. However, ultimately it's just a fancy moving average. I am going to take your suggestions with the RSI to see if I could turn this into something useful, I test mostly on crypto
IF you use the indicator with an rsi to see oversold and overbought levels. You can make money of this indicator .lets be honest, this indicator is helpful. There is gonna be losses and wins.
Thank you for the information! I'm trying to test nadaraya for about 3 days so far, and something is strange. Turns out the answer is the indicator is doing repainting, thank you. Can you share a nadaraya indicator that doesn't do repainting? I feel like these 3 days I did something for nothing
Absolutely; I point out a non-repainting version in the video, and you can find it on tradingview by searching the indicators for nadaraya and there is one that is labeled non-repaint, but as I show in the video, it really doesn't work very well; if you use thinkorswim, here is a non-repainting version for thinkscript: usethinkscript.com/threads/nadaraya-watson-envelope-non-repaint-sam4cok-for-thinkorswim.12647/
We were in a Bull market for so long, until this year and the blip during the Covid crash. Wouldn’t this skew the Long results? Anyway, thanks for this. I enjoyed the vid
Great comment! The market trend in the tested dataset absolutely affects the testing outcome. While that effect can't be completely eliminated, it can be minimized by having as large and diverse a dataset as possible, and then taking random samples out of the whole, which helps to see how well the strategy generalizes to any market condition. So on the bell curves that I always show at the end, if the width of the bell is very narrow, then it means no matter where we sampled the data, it gives consistent results. Conversely if the bell is very wide, then there is a great deal of variability in the outcomes depending on market conditions or the particular stock, which of course is less desirable.
Repainting is bad if you are doing this kind of manual backtesting + human mistakes. That's why you should always use automation when you are looking for an objective test.
You didn’t even need to do this video, but thanks 😂 all indicators are not in real time, except the ones that track factors that become present in the market immediately, like fair value gaps as they occur.
You are a good data analyzor but need to know more about technical analyzing i think. for example zig zag is not for predicting the future.it is used to see the swings clearly,to draw a trend line.
Thanks! Yes that’s my point exactly; zig zag, just like this Watson envelope, should be only for past trend visualization and never for use as a real time signal tool or backtesting, since both repaint
I know right! We gotta get the truth out there! (My backtesting in this video of course used a non-repainting version). I'm working on a similar strategy using keltner channels which have a similar shape to this envelope with less lag but are also non-repainting
@@jatin_rawat01 Great question... when I made this video just a couple weeks ago there was an available indicator on tradingview called nadaraya-watson non repaint... i show it side by side with repainting version in the video. Today I don't see that indicator available... it must have been taken down? However, if you use thinkorswim, here is the code for a non-repainting version usethinkscript.com/threads/nadaraya-watson-envelope-non-repaint-sam4cok-for-thinkorswim.12647/
So wait... You claim you are going to test the Strategy when you really only tested one Component of the strategy. The strategy as it was posted was to use the Nadaraya-Watson indicator in conjunction with the rsi indicator (along with the ATR Stop Finder for stop loss and take profit points) but you only crunched numbers using the NW, right? Did I miss something? What you proved was the NW alone isnt going to yield any advantage on the 5 minute time frame but your results say almost nothing about the NW + RSI (+ATRfinder). Your video represents itself as disproving a strategy that you didnt actually test. I do appreciate you pointing out the Re-Paint aspect to this indicator but ultimately, this conclusion you came to is misleading.
Thanks for the comment! The backtest included all components of the strategy… Entry rules for a long position: A red candle pierces below the lower band of the envelope The 5 Period RSI is below 30 The first green candle after that is the trigger candle, and the entry is on the open of the next candle The stop loss is 0.5 * ATR below the low of the trigger candle, and profit target is 1.5 times the risk
@@seriousbacktester I apologize, I see I was wrong. Only so many minutes to spare and I only watched your video once. But I went back and see that you did test the whole strategy. I also watched the mytradingjourney video again and saw that the strategy is exactly as you described. My bad, man! I should've watched the video again before commenting. I appreciate you responding so politely to someone so in the wrong. Subscribed and liked.
Do not use the nadaraya indicator. It does a lot of repainting. Why is historical data so lucrative? Think. I tested for hours with live data. If you want to lose money, trade.
Trading based on indicators are a disaster if using alone. Trading is a combo of knowledge, experience, intuition, technicals and lastly confirmation from indicators
If you watch the video, you'll see that he addresses that problem. I'd love to see what changes he made to the code-- it sounds computationally intensive.
This channel deserves so much more views! Thank you very much for your kindness in sharing these information.
Thank you that’s very kind!
Thank you. Many indicators in Tradingview suffer from the same problem which is why backtesting on historical data is most useless.
Excellent work, as always. I eagerly await your next video!
You are a Data Analyst not just any other backtester. Well done you got a new subscriber with bell enabled 🙂 best wishes.
Funny....just saw the video you referenced and cmmented there that back testing was needed. Thank you for your thorough analysis. It's crazy how many people are here making claims they don't back up with thousands of people thanking them!
Just came across your channel. Great stuff, in a sea of BS, you bring some scientific rigor to the tube. Kudos.
I wish could find this channe before. Excellent work, thanks a lot for sharing it.
RIP I thought it was good to change my life. Thanks for making this videos to save our livessss
Bravo master!!!! First youtube channel that i see that taks about backtesting repainting indicators, and how they look amazing in back testing, but not so much in real life...
Thanks!
Thank you very much for this video.
Could I ask to test 3 variables on the back test using the repainted version? 1 - R:R 1:2, 2 - the stop lost set up as a trailing stop based on the percentage instead of a fixed value, and 3 - lastly using a daily time frame? Thank you in advance.
Interesting video. I use that with Price channels. Normally if it touches the high I sell and if it hits the bottom i'll be looking to buy. I think that adds a parameter that helps vs the indicator by itself.
Just subscribed! My advice: For small time frames, target the match with the higher time frame so you can profit from the trend. Sometimes there are trend changes and these kind of changes start from the smallest time frames which means sometimes this strategy won't work but it eventually will when higher time frame trend changes...
Thanks for the video. The worst thing with an indicator is repainting.
Great info. Would love to see your take on the popular Super Trends indicator.
Oh my. I was growing tired of the other Tradestation "testers" on RUclips not automating their backtests with algorithmically exact bots. You've got a new subscriber today, good sir.
Thanks!
Keep up the good work bro
Need to test this on my more pairs. There are some astounding results available from this indicator using the right pair on the right TF and some form of momentum indicator
Indeed, you're a Serious Backtester. GOD bless you ( : Peace and, respect from FAISALABAD, PAKISTAN. ❤
bAHI YA TRADING STATEGY WORK KR REHI??
Thank you
You're good at this. You'll do fine.
So how would you set up the chart on the 1hr long trade ?
I'm interested in knowing which strategy have you found till now to be of value for intraday traders??
Hi which platform do you backtest on that can automatically backtest numerous times for you. Thanks
actually pretty good channel here
Hey please can you share a code that can help make the alerts print only opposite signals. so if last signal was buy, wait for the sell to print next signal/alert. ty.
Can you tell me which video to watch that was the most profitable strategy after your testing. Please
Good day! I use the Nadaraya Envelope in my trading strategy. Can I suggest to you another way to test it? But It would take 2 indicators rather than the Nadaraya only.
15 min
Default Nadaraya
Default Bollinger Bands
When price touches Both the Bands and the Nadaraya, take a trade with a fixed TP and SL.
I hope you try this one!
Does somebody know how to check in pine script if a candle has closed outside of the envelope and prev candle has a signal printed? any help is appreciated! thx
Pls, can you do price action backtesting without indicators for us 🙏
Uma duvida em português... Please... !!! Este indicador fica repintando quando as bandas superiores e inferiores ficam alterando de posição, tem alguma estratégia que pode ser usado, pois quando se coloca no replay fica evidente a alteração do indicador em relação ao BackTest realizado com o gráfico no passado... Abc... !!!
Try this strategy on range bars instead of candlesticks. Try 80R range bars for NQ and 20R range bars for YM. I guess that will give you better results.
which framework/library do you use in python for backtesting and for calculating the nadaraya-watson envelope or any other indicator?
For common indicators, like MACD, EMA, RSI and such, I typically use this library that works with pandas... github.com/peerchemist/finta But for less common indicators or special situations then I code it myself
Lux has added optional non paint in updated version now
I studied this indicator with combinations for months, I find if you take the middle line and use a linear regression or some other type of moving average, that you can create a pretty solid confirmation indicator. However, ultimately it's just a fancy moving average. I am going to take your suggestions with the RSI to see if I could turn this into something useful, I test mostly on crypto
I mean what's the point of having a repaint indicator? I don't see any logic why someone would use them.
nadaraya watson envelope by julien eche works exact same but doesnt repaint
IF you use the indicator with an rsi to see oversold and overbought levels. You can make money of this indicator .lets be honest, this indicator is helpful. There is gonna be losses and wins.
Thank you for the information! I'm trying to test nadaraya for about 3 days so far, and something is strange. Turns out the answer is the indicator is doing repainting, thank you. Can you share a nadaraya indicator that doesn't do repainting? I feel like these 3 days I did something for nothing
Absolutely; I point out a non-repainting version in the video, and you can find it on tradingview by searching the indicators for nadaraya and there is one that is labeled non-repaint, but as I show in the video, it really doesn't work very well; if you use thinkorswim, here is a non-repainting version for thinkscript: usethinkscript.com/threads/nadaraya-watson-envelope-non-repaint-sam4cok-for-thinkorswim.12647/
We were in a Bull market for so long, until this year and the blip during the Covid crash. Wouldn’t this skew the Long results? Anyway, thanks for this. I enjoyed the vid
Great comment! The market trend in the tested dataset absolutely affects the testing outcome. While that effect can't be completely eliminated, it can be minimized by having as large and diverse a dataset as possible, and then taking random samples out of the whole, which helps to see how well the strategy generalizes to any market condition. So on the bell curves that I always show at the end, if the width of the bell is very narrow, then it means no matter where we sampled the data, it gives consistent results. Conversely if the bell is very wide, then there is a great deal of variability in the outcomes depending on market conditions or the particular stock, which of course is less desirable.
How can u automate this strategy
Does your studies only focus on stocks or does it also apply to all pairs?
Thanks for the question! I test stocks only, perhaps for the selfish reason that I only trade stocks
Does anyone have this indicator non repaint code for trading view please help
Repainting is bad if you are doing this kind of manual backtesting + human mistakes. That's why you should always use automation when you are looking for an objective test.
Can you share with me your non-repaint nadaraya envelope python codes. Thank you.
Absolutely; ask and you shall receive!
controlc.com/6a7b6a42
I mean what's the point of having a repaint indicator? I don't see any logic why someone would use them.
Also why is everyone worried about repainting? You need to trade it live and wait for a candle to close, not just enter when it prints
i know right, i don’t understand the hate lol
Can you make a video of a good strategy?
Lol I hear ya, and I’m working on it…at least it will always be unbiased!
That indicator is repaint isnt it?
Here's a video where there was a 78% winrate but with better modified version of the Nadaraya: ruclips.net/video/CjZQ_OhWPkI/видео.html
You didn’t even need to do this video, but thanks 😂 all indicators are not in real time, except the ones that track factors that become present in the market immediately, like fair value gaps as they occur.
You are a good data analyzor but need to know more about technical analyzing i think. for example zig zag is not for predicting the future.it is used to see the swings clearly,to draw a trend line.
Thanks! Yes that’s my point exactly; zig zag, just like this Watson envelope, should be only for past trend visualization and never for use as a real time signal tool or backtesting, since both repaint
repaint indicator Backtesting what a joke.
I know right! We gotta get the truth out there! (My backtesting in this video of course used a non-repainting version). I'm working on a similar strategy using keltner channels which have a similar shape to this envelope with less lag but are also non-repainting
@@seriousbacktester please waiting for keltner channel analysis
@@seriousbacktester Keep us posted Sir.
@@jatin_rawat01 Great question... when I made this video just a couple weeks ago there was an available indicator on tradingview called nadaraya-watson non repaint... i show it side by side with repainting version in the video. Today I don't see that indicator available... it must have been taken down? However, if you use thinkorswim, here is the code for a non-repainting version usethinkscript.com/threads/nadaraya-watson-envelope-non-repaint-sam4cok-for-thinkorswim.12647/
Indicator non repaint is real?
So, I don’t understand the sense of this video
most of the indicators from lux are repaint, what a joke!!!!
So wait... You claim you are going to test the Strategy when you really only tested one Component of the strategy. The strategy as it was posted was to use the Nadaraya-Watson indicator in conjunction with the rsi indicator (along with the ATR Stop Finder for stop loss and take profit points) but you only crunched numbers using the NW, right? Did I miss something? What you proved was the NW alone isnt going to yield any advantage on the 5 minute time frame but your results say almost nothing about the NW + RSI (+ATRfinder). Your video represents itself as disproving a strategy that you didnt actually test. I do appreciate you pointing out the Re-Paint aspect to this indicator but ultimately, this conclusion you came to is misleading.
Thanks for the comment! The backtest included all components of the strategy…
Entry rules for a long position:
A red candle pierces below the lower band of the envelope
The 5 Period RSI is below 30
The first green candle after that is the trigger candle, and the entry is on the open of the next candle
The stop loss is 0.5 * ATR below the low of the trigger candle, and profit target is 1.5 times the risk
@@seriousbacktester I apologize, I see I was wrong. Only so many minutes to spare and I only watched your video once. But I went back and see that you did test the whole strategy. I also watched the mytradingjourney video again and saw that the strategy is exactly as you described. My bad, man! I should've watched the video again before commenting. I appreciate you responding so politely to someone so in the wrong. Subscribed and liked.
Do not use the nadaraya indicator. It does a lot of repainting. Why is historical data so lucrative? Think. I tested for hours with live data. If you want to lose money, trade.
Trading based on indicators are a disaster if using alone. Trading is a combo of knowledge, experience, intuition, technicals and lastly confirmation from indicators
Extreme repaint indicator..don't follow it..
If you watch the video, you'll see that he addresses that problem. I'd love to see what changes he made to the code-- it sounds computationally intensive.
Fake profit, it repaint indicator
Also why is everyone worried about repainting? You need to trade it live and wait for a candle to close, not just enter when it prints