Lesson 1.
2
TradeStation Walkthrough
Tomas: Okay, so let me give you a very, very quick walkthrough in TradeStation once
again.
So, you've already seen the code for the DOW example. That’s just to explain
to you the concept, and here we have the testing strategy. So you can it's
nothing special.
Again, not an actual strategy I would trade, but absolutely great for this
course, for the sake of showing you all the dynamic position sizing methods
and test them with the strategy.
We basically have some point of initiation which is yesterday's close plus/mi-
nus space, which is average through range 40, multiply by 3.25.
We have ADX filter, and we buy or sell exactly based on what you know al-
ready from my breakout courses. And we use stop loss $1,500.
So, you have the strategy in the second window.
You see it's called DPS Testing Strategy. You have it in this module and, again,
this is just an example, not an actual strategy. It didn't go through any robust-
ness testing as you know it from the Masterclass.
It was just based for the sake of showing you testing each concept, but it's
very, very good for this purpose - for explaining all the dynamic position siz-
ing concepts.
So we're not really preoccupied with anything here. We're not preoccupied
with slippage or commission. Just forget all this. Again this is a model strategy
- modelling strategy just to model different examples.
But just to have some overview, it's a strategy which is losing on the short
side and making money on the long side. But it will be interesting to see.
That's making it even more interesting to see what it will do with different
Page 1 of 2
(c) 2018 [Link] / Distribution without author´s approval is not permitted.
TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
position sizing, especially on the short side. And we will test different posi-
tion sizing especially on the short side and we will test different position siz-
ing, dynamic position sizing methods, with this strategy to see how much we
can improve, especially the Net Profit Drawdown ratio, which is our most de-
sired metric.
So now we have 25,000 and drawdown is 6, so it's about 4.5:1.
We will definitely be able significantly improve this ratio as well as equity
curve, so you'll see. But just to understand now what we will be working
with, this is the strategy.
You'll see in every next module as a base strategy, and we will take it from
there.
Okay, so that's really all.
I hope that you have full foundation right now. You understand all the im-
portant basics about dynamic position sizing. If something is not clear yet,
don't worry because next module will be very, very practical. We will be go-
ing through very practical examples and you will definitely understand every
single details after a couple of practical examples that are just in front of us.
So, I promise you at the end of this course, everything will be super clear to
you.
Okay, so thank you very much and see you in Module Number 2.
Page 2 of 2
(c) 2018 [Link] / Distribution without author´s approval is not permitted.
TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS