Discussion of article "Machine learning in Grid and Martingale trading systems. Would you bet on it?" - page 5

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ROMAN KIVERIN:

That's right. If you have a herd, it is better to milk a couple of dozen cows to collect the cream, and sell the excess and buy new hay. A lot of people want everything at once. Your article is a guarantee for the majority. If you have a herd you need to move it, otherwise it will scatter. Infusion of a new portion of some guarantees is always praiseworthy. It is even difficult to object here. The most profitable thing is, will be, and will remain a good show. And better than a good show, there can only be a better show to meet the needs of the majority. That's right. The crowd rules. So you have to throw more and more fodder at the audience. The important thing is that everybody's willing to pay for what they get. Ready to have a steady income? Sign here. Then it's on to the seats you buy on the ship. The audience gets their seat in the audience.

Score, you don't even need rational logic. Come and get it. The more we buy, the more we take. The article is right on the money. If you want to work with the net, then we work with the net. By the way, I've got a couple of orders for mesh right now. Okay, the crowd rules. :)

Absolutely. There are some "traditional" things that were once popular/demanding. Why not take new wrappers in the form of machine learning technologies and wrap them in old candy.

There's also demand for AI in pair trading and basket trading. In part, the demand is fuelled by articles. But new products in the Marketplace from other authors are also emerging from these articles. Since there is no water here, but ready-made solutions.

 

i use martingale and grid for along time but with combination of vanilla options in order to manage the risk

i really like your idea and would love to see further improvements and results

 

With extraordinary times where Central Banks are printing money like never before it is very likely that many assets are biased towards one direction (upwards). With backtesting of the last 3 years only, this trading system is prone to face higher risk once Central Banks have to hike rates (you can argue if you like that this never happens, but can you garantuee this 100%?)

Then draw downs will be higher than those ~40% as reported in the article. For any serious investor such risks are not acceptable.

 
The idea behind the experiment is valid, since for machine learning and quantitive trading the stop loss is a bad ideia. So the martingale system is pretty valid, but the parameter of the trade is bad. But keep going man, your posts are very good
 

Thank you very much for your interesting article.
Could I conclude that your system automatically adapts the step and the martingale coefficient according to the market conditions, or do you have to backtest in python and generate the include file periodically.

Thanks again.

 
Martingale system is good for making some money in short term(hopefully) But in long term you go bankrupt. No matter how complicated your choice is.
 
Yashar Seyyedin #:
Martingale system is good for making some money in short term(hopefully) But in long term you go bankrupt. No matter how complicated your choice is.

Agree. Grid, hedging, martingale are popular for their quick & regular profitability. They are also responsible of all the complaints against EA being scam, because of the margin call it exposes to being a constant.

It's a logical and mathematical problem, the one who will solve it - in a way or the other - will earn a loooooot of money ! 

According to the graph, the found pattern works from the end of 2016 to the present day, in the rest interval it fails.

Here's another try with machine learning ... 

Since many years I have a source code of an EA using these techniques, from time to time, when I have an idea, I give a try ... 😉

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