- ago
My first post of 2023... So, I wish a Happy and Prosper New Year to everyone; and may Wealth-Lab help you achieve your trading goals for this year!


One of my trading related resolutions for this year was to finish migrating my Wealth-Lab 6.9 strategies to Wealth-Lab 8, to finally retire the older version. However, I am having a very hard time doing so: in WL6 I only had strategies for futures trading; where it is very important to set the adequate stop loss and profit target. However, because of the way the percentage metrics are calculated in WL8 for futures trading, I simply cannot use some of the innovative tools like the "Perfect Stop Loss" preset under "Position Metrics"; the way it is implemented, I am getting the perfect stop close to 30-40% for most of my strategies - which is obviously suicidal.

You can see what I mean if, for example, you run the sample strategy "Knife Juggler" with the Nasdaq 100 (NQ) futures contract; for which I have under "Markets and Symbols":
Symbol Market "Point Value" Margin "Tick Size" "Display Decimals" "Quantity
&NQ_CCB CME 20 30719.69 0.25 2 0 Future USD

And then try to follow the process described in the Blog post:
https://www.wealth-lab.com/blog/perfect-exits

The way the percentage metrics are calculated (Profit %, MFE %, MAE%, etc), render the performance visualisers of very little usage for futures traders.

For the futures traders out there (if any): how do you use WL8 to set stop losses or profit targets?

Or, alternatively, for the WL8 team: how can I use WL8 effectively for that simple purpose?

Until I find a solution for this simple problem, I cannot retire WL6, since my futures strategies require periodic optimization and changing of the stop losses and profit targets. Unless I am missing something fundamental, I don't think I can use WL8 for future strategies development.


Thank you in advance for any help!

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Cone8
 ( 6.32% )
- ago
#1
We've already had a pretty good discussion on it, and made it a feature request.
https://www.wealth-lab.com/Discussion/Percentage-calculations-for-futures-trading-7514

Is there a reason you can't use that extension code I provided to do what you need?
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- ago
#2
Hi Cone,

I remember that discussion: at the time, I pretty much lost the debate; and then it turned into a Feature Request that didn't garner much support, unfortunately. Hence why I chose to create a separate thread asking how should I perform the analysis: either I am right and the current metrics are not appropriate for futures trading development (and I do understand that if there are no other futures traders around, then there is no motivation for the WL team to change it); or I am wrong (and I would be happy to be) and maybe someone can walk me through a process to get it done.

I appreciate the extension code that you provided in the other post. However, it only serves to calculate the raw value of the metrics on request. I still lose much of the analysis power of the different out-of-the-box performance visualisers. Moreover, I realised that with the current power of the building blocks, I can actually port most of my base futures trading strategies using just Building Blocks: in which case I wouldn't have access to that extension code (this for me has the big advantage that I can quickly play with some additional blocks to quickly prototype new ideas). Ultimately, we can do everything with code; but I see the value of a platform like WL8 in what is available out-of-the-box; otherwise, I could re-invent the wheel and do it all in Python.
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