- ago
Hello,

I was thinking it might be useful to have a block that would turn off a strategy after a number of losing trades within a certain time period or a number of losing trades in a row. Sometimes conditions are just not right for a particular strategy, but you haven't codified how to avoid those conditions. Just waiting a while might avoid some bad losses.

I was thinking about this when I was working with the "Bars since entry/exit" condition block. I thought it would be useful that instead of just bars since, it could be "bars since losing exit" or something like that.

What do you guys think?

Thanks!
Dandude
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- ago
#1
Hi,

How would it resume the trading if no winning trade is made possible because all the trading is turned off?
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Cone8
 ( 5.68% )
- ago
#2
The suggestion was "within a certain time period", or window. As you move forward, the lookback won't have as many losers. So the condition could have options for

X Losing (or Winning) Trades within:
1. a specific "Cool-Off" period (expressed in Y Trading Days)
OR,
2. within the last Z bars

You'd need to drop the Logical Inverter on the condition, or maybe just include it by default.

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- ago
#3
Sans building more Blocks (pun intended), you could use the "Trade Outcome" PosSizer from the PowerPack to achieve a similar goal. The PosSizer can be configured to reduce the position size if previous trade is a loser. And if its "Cumulative" option is activated, a losing streak would further decrease the position size. For more details, Help > Extensions > Power Pack > Position Sizers > Trade Outcome.
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