Welcome to this video on how to optimize a seasonal trading strategy to boost your trading returns
Hello, this is Mark from Tradinformed.com and welcome to this video on seasonality in this series of videos
I have been looking at monthly and time of year analysis on how to improve our trading returns
so in this particular
Video or rather shall I look at the previous videos?
We've been looking at whether seasonal factors exist how they can boost your trading returns and how to trade at seasonal factors
There are there are some links on the screen if you would like more information about these particular subjects
But in this video I'm going to be looking at how to optimize a seasonal trading strategy
And you can see on the screen at the moment. I have the results of a trading strategy and
the model that I'm using here is a Tradinformed backtest model and
This is a way for trading for all sorts of different trading strategies
You can look at the trading list the list of trades
How it performs annually and indeed you can compare different
strategies
So I'm going to demonstrate how to use this model to optimize your monthly analysis
I'm going to start off by looking at
Every quarter, so I'm gonna start off with January to March
I'm gonna set the number of months in a segment as 3 so we've got a quarter
And I'm going to do it set it to run every quarter
There's gonna click this button here. It's going to run the analysis
And automatically bring up the results here
So we can see a very similar pattern to what we saw before
We've got more data. So we have more trades in each segment of our analysis here
You can see
scroll down here visually
Start of the year
Particularly the end of the year where blue and red lines, net profit and the profit factor both go up
We can have a look at a more finely grained analysis we can say what about having every two months
Click here to run the optimizer and
It's going to automatically bring up the strategy review and we can see January to February
March to April and once again it gets a bit repetitive
We're seeing a boost towards the end of the year and we can see in this form of the aggregated data
that September and October have not performed particularly well
but November and December
Including the fabled Santa Claus rally have performed
Well, so end of the year historically and it's not every single year
We still only get 41% winning trades, but it has outperformed the rest of the year historically speaking
So, how am I doing this?
Well, all the optimizer is doing is automatically running different scenarios
So you can do this manually
But the model here takes a lot of the work out of your hands
So you can see here the starting month if I was to move this on to
Three here. It would show me the data for March and April if I was to move it on to 5
It would shows the data for May and June and so on we can use
I'm just gonna clear this for one moment
We can use this button here. We can just do a manual analysis so if
I wanted to look at May and June and I wanted to see what would happen if I had a much shorter
Profit target or I included a trailing stop
As we may well want to do we may wonder for a particular month of year
Is there any way I can improve my trading strategy? I can just click here?
What I've got here is a copy of our trading
results and here the
settings that I used to achieve those who can see I use a profit target of to
Stop loss of 1 and a trailing stop of 2
now the advantage of being able to this particular model is because it automates so much of it for you and
Gives it everything in a user-friendly form
If you want to have a look at the trade list, what is going on in your trading strategy in fine grain?
detail you can use the different metrics here to analyze each trade if you want to and
understand in depth your trading strategy without
risking any capital
To do so. Now I hope you found this video useful. This is a serious part of a series of videos on
Seasonal trading how we can use these to improve our trading results
Now if you want more information about trading the financial markets. Please go to
www
tradinformed.com