|Adaptive Double Stochastic method description|
Easy isn't it? By why we call it adaptive? It's because we continously backtest the indicator to find the best border values for every particular symbol to maximize backtest profit!
But how we backtest it?
The goal of backtest optimization is to find top and bottom line values for highest profit.
The backtest starts a year ago. In the early version we assumed that we have unlimited credit and we can buy 100 papers at any buy signal.
So open position can include more than 100 stocks but we can sell of course only if position is opened.
But such assumption leads to the fact that more expensive stocks can looks like more profitable.
So in the current version we start to buy with 10K USD in the hand and sell all the stocks when conditions are appropriate
How this could help you?
Imagine you want to find most profitable stocks on NYSE with market capitalization > 1B USD
Set conditions and press exchange button:
Now we see something like:
We see backtest profit values as huperlinks and we can inspect how they are formed:
and we can check chart by pressing magnifier icon:
Now you can find the most intetresting stocks on whole market with that simple yet powerful method.
Then you can explore founded symbols deeply using our other trading tools
Big thanks to Yiannis for his notes.