Hey Ali, thanks for another great video! I love all of the content you post and am currently testing some variations on some of the strategies in your videos. One question though- its obviously dependent on skill level, but is it possible to have a portfolio of strategies that trade many different asset classes to have yearly average return of 50-70%?
Hi Danial great questions. When you build a portfolio of robust strategies, number one priority is to mix strategies that are very low or negatively correlated, in order to smooth the equity curve by reducing drawdowns. once you do that, then you can introduce position sizing to achieve high returns. the drawback is high returns will undoubtedly bring high drawdowns or even risk of ruin, so to shoot for high returns, you need to accept high drawdowns, plus you need to make sure that you are above risk of ruin threshold through Monte Carlo sims. Even then while it is achievable it will be extremely difficult psychologically to implement when you have a large account. high returns on single year, will happen to you at one time or another as it is part of the distribution like MR strategies last year, but that is not CAGR that you can depend on. finally if you start with $20K and add $20K per year for 5 years, in 10 years you should have above $1M at 30% CAGR that's +$900K profits on $120K investment, so always look at the big picture. forget about those get rich schemes, all the billionaires are there because they invested for a long time, not because they made 50% CAGR
Ali, thanks for another video. I like the way that you do analysis. How much will your masterclass be? Will it teach us how to use all of the programs you use? If I am exclusively interested in trading BTC/ETC how would you formulate market regime for them, as they are relatively new assets? Perhaps using correlation ratios based on assets that have been through multiple market conditions? Thanks,
Regime Change Detection is a very complicated topic, with only few books available and the authors are stingy to share the code. But thanks for bringing up the topic.
Hi Ali, thanks for sharing great contents video to us. I am watching Discord Live video right now. Discord channel is help a lot of for me. I can't wait ATM. Thanks.
Hi Mr Ali, i saw many times this lecture the market regime , just wow, it is an amazing approach to understand how the market works depending on the criteria explain in this lecture just is brilliant really is a top innovation how to build a trading strategy, yeah before to put the feet in the water , it is important to understand Market regime , will be nice and great Mr. Ali if you can create a tool to plug in chart to help us to take a decision before to build a strategy, thank you very much for this interesting topic
Nice video! I have a question. I use a simple RSI2 system. I’ve found that there are some equities in uptrends since covid that are performing really well (about 100 trades, profit factors between 5-12, etc., drawdowns below 10%, etc.). Would it be a good idea to rotate some of these equities into the portfolio, or just stick to the mean reverting indexes? I don’t know when it makes sense to change asserts in a portfolio I guess. Do you have any thoughts or videos on this?
Ali, I’m a programmer with vast knowledge, where can I see a list of topics and the cost of the master class? Also how long is it and what is the format? Thanks 🙏
Algo Trading Masterclass will open again end of this month with all details explained in the seminar, register here to be notified go.statoasis.com/ATM
Hi Kfir, StatOasis Market Regime is included with Algo Trading Masterclass. but you can still try the concept with moving average and ATR. ATM will open for enrollment end of this month, if you are interested register here to be notified Go.StatOasis.com/ATM
:) yes you are right, thank you for pointing that out. The bottom line should say sell, but of course that was only for illustration, as the real strategy had all market regime code in it and was Buy when C>C[1] and Sell when C
Ali I have found that the trades from sqx was 1 bar late and sometimes early, and that caused the trade on live account to be different from backtest how do you fix this ? Thanks
there are many issues that can cause discrepancies, like data, engine, shift, session, make sure they all match on both sides (sqx and trading platform)
@@StatOasis I think they mean, in the Multicharts strategy summary using the StatOasis market regime (at 11 mins and 33 secs), the buy and hold amount (shown as $520,239.05) is much greater than what the strategy made ($113,275). So they are asking, what is the point of all this if buy and hold did way better?
Obviously a strategy of buying if close > close[1], sell if close < close[1] is not going to beat buy and hold. Nobody is suggesting that is a viable strategy. The point is not to show that you can beat buy an hold, it is show that a market regime filter should improve your results whatever the trade triggers are.
there are only a handful of real educators out there, you are one of them. thanks
Thank you for your kind words
All your videos are amazing ✌🏿
Thanks 4 the lessons ❤️
Thank you so much, glad to have you as a viewer of the channel
Hey Ali, thanks for another great video! I love all of the content you post and am currently testing some variations on some of the strategies in your videos.
One question though- its obviously dependent on skill level, but is it possible to have a portfolio of strategies that trade many different asset classes to have yearly average return of 50-70%?
Hi Danial
great questions. When you build a portfolio of robust strategies, number one priority is to mix strategies that are very low or negatively correlated, in order to smooth the equity curve by reducing drawdowns.
once you do that, then you can introduce position sizing to achieve high returns. the drawback is high returns will undoubtedly bring high drawdowns or even risk of ruin, so to shoot for high returns, you need to accept high drawdowns, plus you need to make sure that you are above risk of ruin threshold through Monte Carlo sims.
Even then while it is achievable it will be extremely difficult psychologically to implement when you have a large account.
high returns on single year, will happen to you at one time or another as it is part of the distribution like MR strategies last year, but that is not CAGR that you can depend on.
finally
if you start with $20K and add $20K per year for 5 years, in 10 years you should have above $1M at 30% CAGR
that's +$900K profits on $120K investment, so always look at the big picture.
forget about those get rich schemes, all the billionaires are there because they invested for a long time, not because they made 50% CAGR
@@StatOasis Ok, thanks a lot!!
Ali, thanks for another video. I like the way that you do analysis. How much will your masterclass be? Will it teach us how to use all of the programs you use?
If I am exclusively interested in trading BTC/ETC how would you formulate market regime for them, as they are relatively new assets? Perhaps using correlation ratios based on assets that have been through multiple market conditions?
Thanks,
ATM will open for enrollment in 2 weeks, all questions will be answered in the seminar
Register here to be notified Go.StatOasis.com/ATM
Regime Change Detection is a very complicated topic, with only few books available and the authors are stingy to share the code. But thanks for bringing up the topic.
Thank you for watching
There are free indicators to identify it
@@teebone2157 can you please point out to some of them
Hi Ali, thanks for sharing great contents video to us.
I am watching Discord Live video right now.
Discord channel is help a lot of for me.
I can't wait ATM.
Thanks.
Thank you for your kind words and for being a viewer of the channel. looking forward to see you inside ATM
Hi Mr Ali, i saw many times this lecture the market regime , just wow, it is an amazing approach to understand how the market works depending on the criteria explain in this lecture just is brilliant really is a top innovation how to build a trading strategy, yeah before to put the feet in the water , it is important to understand Market regime , will be nice and great Mr. Ali if you can create a tool to plug in chart to help us to take a decision before to build a strategy, thank you very much for this interesting topic
Market Regime indicators are included in the Algo Trading Masterclass go.statoasis.com/atm to be used as filter and/or signals for strategies.
Nice video! I have a question. I use a simple RSI2 system. I’ve found that there are some equities in uptrends since covid that are performing really well (about 100 trades, profit factors between 5-12, etc., drawdowns below 10%, etc.). Would it be a good idea to rotate some of these equities into the portfolio, or just stick to the mean reverting indexes? I don’t know when it makes sense to change asserts in a portfolio I guess. Do you have any thoughts or videos on this?
All your rsi on stocks can be one system in a portfolio.
Say you 5 systems in a portfolio, one of them could be rsi on 10 stocks
Ali, I’m a programmer with vast knowledge, where can I see a list of topics and the cost of the master class?
Also how long is it and what is the format? Thanks 🙏
Algo Trading Masterclass will open again end of this month with all details explained in the seminar, register here to be notified
go.statoasis.com/ATM
Hi Ali , can you share the code in El for market regime with extreme changing in volatility? Thanks kfir
Hi Kfir, StatOasis Market Regime is included with Algo Trading Masterclass. but you can still try the concept with moving average and ATR.
ATM will open for enrollment end of this month, if you are interested register here to be notified Go.StatOasis.com/ATM
Hi Ali, there is an error in both codes you are showing...the second line should be "sell" instead of "buy".
:) yes you are right, thank you for pointing that out.
The bottom line should say sell, but of course that was only for illustration, as the real strategy had all market regime code in it and was Buy when C>C[1] and Sell when C
Ali I have found that the trades from sqx was 1 bar late and sometimes early, and that caused the trade on live account to be different from backtest how do you fix this ? Thanks
there are many issues that can cause discrepancies, like data, engine, shift, session, make sure they all match on both sides (sqx and trading platform)
Sorry i dont pay attention , they are available thank you i oversight that , cheers
Glad you found it useful
According to your testing. You would have made over twice as much simply by buying and holding.
which part?
@@StatOasis I think they mean, in the Multicharts strategy summary using the StatOasis market regime (at 11 mins and 33 secs), the buy and hold amount (shown as $520,239.05) is much greater than what the strategy made ($113,275). So they are asking, what is the point of all this if buy and hold did way better?
Obviously a strategy of buying if close > close[1], sell if close < close[1] is not going to beat buy and hold. Nobody is suggesting that is a viable strategy. The point is not to show that you can beat buy an hold, it is show that a market regime filter should improve your results whatever the trade triggers are.