Use the trading strategy rules page to enter the rules that determine how the Trading Strategy trades and control how those rules are optimized.
- To Select the optimization method used to determine the best rules and rule parameters for the trading strategy:
Select the desired optimization method from the drop down box
No Rule Optimization – Trades using the user specified rules. Performs no modifications to any rules or rule parameters.
Rule Parameter Optimization – All of the conditions (rules) are used, but the GA evolves optimum parameters during optimization. These parameters do not produce rules that are individually optimum, but optimal as a complete set.
Rule Selection Optimization – Chooses among all the rules specified, leaving only the ones that work best together during optimization. Does not modify any of the rule parameters.
Full Rule Optimization – Performs both Parameter Optimization and Rule Selection at the same time.
Custom Rule Optimization – Allows individual selection of which rules are optimized, which rules are always used, which parameters are optimized and which parameters are locked to their original value.
The Long Trailing Stop tab allows you to specify trailing stop price levels for a long position. Note that a trailing stop liquidates a position with a stop order placed prior to and executed during the bar in which the stop price was penetrated. In contrast, exit conditions liquidate a position with an exit order placed and executed after the bar on which the exit condition(s) became true.
If you don’t want to use a long trailing stop in this trading strategy, then deselect “Generate a trailing stop order for every bar that is after an entry order has been filled and before an exit order has been generated”. This will allow you to continue without entering any trailing stop price levels for a long position. Note that if you deselect both long trailing stop and long exit conditions, then a long position will end (with a market order to exit long) whenever a short entry signal occurs.
For more information about the different types of trading strategies see Trading Strategy Types.
If an indicator has a + sign to the left of the indicator you may click on the + sign to show the indicator’s parameters or the indicator’s parameter ranges. To modify the parameter or parameter range, press the Modify Parameter button or double click the parameter or parameter range.
If an indicator has a ‘ sign to the left of the indicator you may click on the ‘ sign to hide the indicator’s parameters or the indicator’s parameter ranges.
- To insert long trailing stop price levels:
Press the Add price level(s) button.
- To show or hide a trailing stop price’s parameters or parameter ranges:
Click on the + sign to the left of the price to show its parameters or parameter ranges. To modify the parameter or parameter range, press the Modify Parameter button or double click the parameter or parameter range.
Click on the – sign to the left of the price to hide its parameters or parameter ranges.
- To modify a long trailing stop price level, long trailing stop price level’s parameter, or long trailing stop price level’s parameter range:
Select the item in the list you wish to modify.
Press the Modify price level button or Modify Parameter button (depending on what item you have selected).
By double-clicking on the item in the list you wish to modify.
- To remove a long trailing stop price level:
Select the price level(s) in the list you wish to remove.
Press the Remove price level(s) button or press the delete button on you keyboard.
- To individually control parameter optimization of a long trailing stop parameter:
Click in the box to the left of the parameter name.
A black lock icon in the box to the left of a parameter, indicates that NeuroShell will only use the listed parameter value.
A red circular arrows icon in the box to the left of a parameter, indicates that NeuroShell Trader will determine a parameter value within the listed parameter range that gives the best results during optimization.
A gray circular arrows icon in the box to the left of a parameter, indicates that the listed parameter range specifies only a single value, so NeuroShell Trader will only use that single value.
- To individually control rule selection optimization for a long trailing stop price level:
Click in the box to the left of the price level.
A black lock icon in the box to the left of the price level, indicates that NeuroShell will always use that condition.
A red circular arrows icon in the box to the left of the price level, indicates that NeuroShell Trader will determine during optimization whether or not that price level should be used to obtain optimal results.
When a price level’s parameters are not shown/expanded, a black lock icon with small red arrows in the lower right corner corner simply indicates that although the price level itself is always used, one or more of it’s undisplayed parameters will be optimized. In other words, parameter optimization is enabled for this particular price level.
When a price level’s parameters are not shown/expanded, a red circular arrows icon with small black lock in the lower right simply indicates that although NeuroShell will determine during optimization whether or not the price level is used, none of it’s undisplayed parameters are being optimized. In other words, rule selection is enabled for this particular price level.
When displayed on a chart, a long trailing stop is displayed as a horizontal blue line placed at the most recent trailing stop price level and extending from just after the bar on which it was calculated to the next bar for which it is active. If the trailing stop price level is reached during the next bar, the exit price is annotated on the next bar with a blue X. The exit price is the trailing stop price (or open price if the bar opens below the trailing stop price) minus slippage.
After setting your long trailing stop price levels you can select the Long Entry tab, Long Exit tab, Short Entry tab, Short Trailing Stop tab, Short Exit tab or the Next button.
- If you are using both trailing stops and exit conditions, the trailing stop will not be placed on days where the exit condition is true and the exit order type is a Market Order.
- It should be understood that trading can result in losses, and that past performance of a trading system is no guarantee of future performance.
- Switching back and forth between custom optimization and one of the first four optimization modes will remember your last custom settings. However, when in one of the first four optimization modes, modifying the individual optimization settings of a rule or parameter will automatically switch to custom optimization and any previous custom settings will be lost.
Topics of Interest:
What are Trading Strategies?
Trading Strategy Types
What are Genetic Algorithms?
How Does a Genetic Algorithm Work?
Why is a Genetic Algorithm Better Than Other Optimizers?
What Types of Problems Do Genetic Algorithms Solve?
How are Genetic Algorithms Used in the NeuroShell Trader Professional?