trade ranking

[ajellis]

David,

it has occurred to me that it might be very well worthwhile to enable tradesim to test a method of ranking trades signalled on a given day in preferential order. This would enable testing of preferential orders in the case of multiple signals being given on one day.

For example, if a trading system provided entry signals for 10 stocks, tradesim could rank them in preferential order by a defined method, such as lowest priced first through to highest price last.

At present, when faced with a choice of 10 possible trades on a given day, Tradesim chooses randomly.

Other suggestions for preferential order are:

highest volume first, lowest volume last
lowest risk (difference between close and initial stop) first, highest last

This would enable a portfolio methodology to be tested without randomness except where two or more stocks were equal in price, volume, trade risk etc.

It may even be possible to choose based on a Relative Strength rating between each candidate and the market index.

Possible?

regards
Andrew

[David Samborsky]

You can assign a rank for a given symbol when generating a trade database and have this rank prioritised in TradeSim. But you cannot assign a rank to a trade based on a formula.

[adanwillemse]

Hi David,

Further to this idea, how about possibly exiting a trade once the stock/share's "Rank" has fallen to a pre-defined point?

For example:
1. Day 1: Select a trade based on RS trade rank.
2. Day 2+: Compare portfolio stocks' trade rank values with that of other stocks in my universe.
3. Exit a trade if that particular stock's trade rank falls below the 80th percentile.

It allows you to buy strength and sell when the strength is waning.

How can this be modelled with Tradesim and Metastock?

Regards,

Adan