How Skipping Trading Fees Unlocks True Indicator Potential

[@YuriiHordiichuk-x4h]

Thank you!

[@CodeTradingCafe]

Welcome! Thank you for your support.

[@bosco6771]

Thanks for sharing ! May I know what plain vanllia take profit / stop loss strategy do you use to probe the effectivess of no-fee performance of indicators ? Reason of asking is the tp / sl strategy can also distort the final outcome and thus how do you establish that benchmark line for objective comparison of performance?

[@CodeTradingCafe]

Hi, I was either using a fixed SL distance and TP was deducted from SL using a ratio (1.5~2), or I was also using ATR, so SL = some_coefficient * ATR and TP = some_ratio * SL. Very simple and the coefficient and ratio parameters can be changed to fine tune the SL and TP. I agree with you the AL/TP can influence results to an extent but this can be seen on the heatmap (Check this video kzbin.info/www/bejne/p3e2pouvnMmCgdE)

[@TheEcherriman]

Thank you. I am currently thinking about incorporating reversal signals as well as trade management - for example, Engulfing bars, bull and bear pins. How about testing those ?

[@CodeTradingCafe]

I think candle patterns are good combined with key levels, support and resistance. Worth it, go for it.

[@seguidor777]

Hello, first of all thanks for sharing this content. I've been trying to test your strategies, but I have lack of price data, is there any place you may recommend to download historical price data (fx and commodities) in multiple time frames?

[@CodeTradingCafe]

Hi, you can get free data from yfinance, Dukascopy or your broker. Dukascopy is good, try it out.

[@seguidor777]

@@CodeTradingCafe Sure will try it. Thanks

[@nkwebikarome4764]

Missed your content !!

[@CodeTradingCafe]

More to come! Thank you for your support.

[@kenzamejhed4163]

Please please do me a favor i need you to backtest this strategy " ""If the (Close Price > Upper Bollinger Band) AND (Stoch RSI K line > Stoch RSI D line) we get a LONG signal. If the (Close Price < Upper Bollinger Band) AND (Stoch RSI K line < Stoch RSI D line) we get a SHORT signal."""

[@CodeTradingCafe]

Did you trade this system before?

[@kenzamejhed4163]

@@CodeTradingCafe yes absolutely

[@jordan5531]

I’ll do it for you. Give me a few

[@trantrunghieu5059]

How about coding in mql4 and backtest in meta trader 4? With mt4, we can include commissions and spread during the backtest, and not need to test in 2 step.

[@randomdude79404]

MQL is limited in what it can do (no AI capabilities)

[@trantrunghieu5059]

@@randomdude79404 The important is Commissions and spreads. As my knowledge, except mql4, no program can include commissions and spread during the backtest.

[@CodeTradingCafe]

Hi, in python we can include commissions and spread average, but I don't include any of these because I want to test the indicator first without any commissions. In python we have the possibility to switch commissions on and off and change the commissions values, along with a lot of visualization and mathematical libraries that can be very useful especially when it comes to using Machine Learning. MQL is not bad but in python you have more options.

[@trantrunghieu5059]

@@CodeTradingCafe Could you please make a video teach us how to add average spread to the Python code? Thanks a lot.

[@CodeTradingCafe]

It's very simple, just add the parameter commission=0.0002 (average Forex spread) to the backtesting function, if you increase the amount of commission you can also take into account different trading fees.