Trading Blox Stock Trading Software Demo: Multi Parameter Stepping and Analysis

Trading Blox Stock Trading Software Demo: Multi Parameter Stepping and Analysis


One really powerful aspect of
System Pack and Trading Blox in general is the ability
to step parameters and to look at what happens
when you vary parameters. Again, as I said
earlier, we encourage people to trade the system
pack at a choice of parameters that makes them comfortable. You don’t have to
trade with ones that came straight
out of the box. And because it’s a robust
type set of systems, you should be able to trade it
at multiple parameter settings and still make money, still have
nice [INAUDIBLE] performance. So let’s look at that. How do we test that? It’s as simple as
checking this Step button. In this case, I’m going to
step the bars in the fast EMA and I’m going to step
the bars in the slow EMA. And I’m going to do
that simultaneously. So let’s say we step
this from 5 to 25 by 5s. So that’s five parameter
tests to test the values at 5, 10 15, 20, and 25. That’s going to
give us five tests. And then let’s say this we
step this from 100 to 160. And we do that by 10s. Well that’s 7 more tests, right? So it’s 100, 110,
20, 30, 40, 50, 60. That’s 7 tests. In total, this is going
to run 35 parameter tests. And it’s going to run each
parameter in combination with each other parameter. And this is what pops out. You’d have, again,
summaries up at the top of each individual test. Then we have some
graphs that can give us very useful information. In this case, what this
particular graph is telling us, we’ve got this
big, broad plateau of really top-tier performance,
a mar of 1 and 1/4, which is about as good as
they get with this strategy. And then we have,
down here, these sets of parameters that
return down at .65. It certainly didn’t lose money. They were still
actually pretty good. But the sharp ratios were about
half what the best ones were. And this type of plot
allows us to see that. So let’s interpret this. What’s going on? We stepped our bars in the
fast EMA against our bars in the slow EMA. And as we see, as we go
this way on the chart, nothing really changes. It’s pretty much the
same across the board. So that tells us our slow EMA
didn’t have a large effect. It was very insensitive
to whether we picked 100, or 120, or 160. On the other hand, our fast
EMA, within this range, it’s very flat. And when you get down
here, it’s very flat. But in between, it
drops off a steep cliff. And we’ll scroll up one. This is just a top-view
of the exact same chart, just looking down on
from directly above. And we can see this line. It’s basically at about 16 bars. That if you stay below that–
if you stay from 5 to 10 to 15, the performance is very good. When you cross that
threshold, you’ve altered the strategy
such that it doesn’t catch the same
trade. [INAUDIBLE]. It doesn’t mean that
there’s anything wrong with the strategy. It means that there’s
a clear demarcation point in this particular
strategy where you have a broad plateau
of good performance and a broad plateau of
not-so-good performance. And there’s a pretty clear
choice between the two. When you choose a
parameter, you’re definitely going to want to be
somewhere down in this area. So that’s just a
brief description of the kind of power that
you have in your hands when you step these
parameters in. You could step
parameters for any of these systems in whatever
combinations you like. Just be aware of the fact that
the more parameter tests there are to a simulation, the longer
it’s going to take to run.

Leave a Reply