Thursday, August 7, 2014

Bill Williams Chaos Trading Strategy Part 4 (automation)

Hopefully this is the post in the series that is going to generate some great interest in the Bill Williams trading strategy.

I will demonstrate how Forex Strategy Builder can take these three indicators, the Alligator, the Awesome Oscillator and the Gator and make them into a trading system that generates some excellent money, fully automated.

I want to show you how this started out and then take you through the progression. First, perhaps notice in this pic the number of variables for the Alligator, each indicator in FSB has a few variables that are used in exploring for a solution to the strategy

This pic shows the starting layout, I started the run with the three indicators and you will notice a little chain link on each of them...., the chain link ensures that those indicators are included in all of the calculations while the variables inside each are combined to create a test trading strategy.

For this task I have been running FSB for a couple hours and it has generated hundreds of trading system solutions, most of them are trash, the system will retain 100 of the best ones for me to examine. Up until now the systems has created close to 400 solutions and done close to 125,000 iterations

Now we can have a look at whatever solutions have been saved and try to determine if any of them are good enough to use as an ea. First we will look at the solutions saved in what is called the repository.

As you will see in the picture below, on the left side are several metrics that we can sort by and on the right side is a listing of the results, in this pic they are sorted by the balance.

By using the sort keys on the left and then examining the resultant list that shows up we can quickly determine if we want to further examine a particular result.

This pic shows that the program added a couple things to achieve the results shown above for the solution that is shaded blue.

I point out that the Out Of Sample for this test is set at 35 % and we can see that there were few good trades in the OOS period, therefore this one will be discarded.

So far we have had a look at the beginning stages of developing this strategy which we are ultimately have trading on a real account. I think you have seen that there can be a lot of possibilities with Mr Williams indicators.

As the generator produces more results and better results I will make another post and we can examine more results.

Stay Tuned.!

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