Hi, real question, how the big hedge funds can't make more ROI than index, while there is strategy like this one doing 73% yearly return, backtested over 20 years of data?
the biggest restriction to hedge funds is capital, you can't invest 100 billion in any strategy on any timeframe, the next biggest restriction is volatility. Big investors (like pension funds, etc.) don't like to see more than 6-10% volatility per year, so that restrict the return a lot. Still there are few hedge funds that do print money year over year for the past 30 years, like renaissance, de shaw, etc.
Thanks a bunch Ali The content you share are very useful and enticing I bet most of your followers are eagerly waiting to enrol in your master class. Do you have a timeframe for the start of new enrollment?
@@StatOasis sorry, i forgot to ask : why do you use the SMA200 and not the EMA200? wouldn't EMA save you from some failed trades (at least from those at the end of a trend) ? Thanks!
You can use ATR or historical volatility, or even the vix but you have to be consistent and not optimize the volatility measure per instrument. I use my own indicators that are fixed regardless of instrument and time frame
Sir, It appears that in strong market, NQ goes up more(and faster) than e mini Sp500. When the market is doing poorly, NQ comes down more & faster compared to e mini. Does it make sense that if market is up strongly for say 2- 3 days in A row, then sell NQ & buy e mini AS PAIR TRADE, and wait. Say 3 days later market is falling strongly 2-3 days in A row,--then reverse the pair trade. Any suggestions for other indices pairs trades, comments ?
Of course you can test it and see if strategy is possible, there are some indicators that measure the diversion. I have some videos about pair trading on the channel
I use two universal indicators that I built, one is for direction and the other is for volatility, and both represent market regime for each traded instrument. The indicators are part of Algo Masterclass, you can subscribe here to be notified when enrollment is open: go.StatOasis.com/MC
I understand that not everyone can or has the time to build strategies, but i also don’t believe in trading one strategy. Am creating a portfolio (multiple strategies) with trading signals that can be copied with a broker so its a lot easier to match the performance. Please subscribe here statoasis.com to be notified when its up and running
Hey Ali, Do you have workflow related video, or can you make FX workflow not workflow tutorial but something which put strategies to robust and then refine?
Yes, that is the objective of the Algo Masterclass, to automate the process with workflows. Subscribe to the waiting list to be notified when enrolment is open go.statoasis.com/MC
My question is whether you have tested which is the best filter to add to Connor RSI. I currently use the 200 day MA but am interested if there is a better one.
each filter will perform differently, so for example you might make less money but lower drawdown, or more trades, but same net profit, etc. Most filters fall under volatility or direction. watch next video it shows you another way to get better results.
Why not trade the Connor RSI long and short on individual stocks with long being above the 200MA and short being below the 200MA. This way you can always be market neutral.
you can, testing is always the final verdict. But simple answer is shorting stocks cost money and not all available all the time. also stocks drift up. You will notice it is very easy to build long strategies on stocks/indexes and hard to do the same on the short side. also unless you have the platform to rank stocks, then it is hard to trade all signals on all stocks even on long side only.
the direction and volatility indicators which make the Market Regime will be part of the Algo Masterclass. you can subscribe here to be notified when enrollment is open: go.StatOasis.com/MC
@@StatOasis No it is not mentioned in the video. For me a no stop loss strategy means a 100% win rate of trades. Why it’s not the case un that strategy?
You can’t trade emini with 10k but micro futures are doable, of course only Monte Carlo testing will determine the correct capital. It might work on 6 or 4 hours. The lower you go the more noise you will have to deal with
@@StatOasis Hi, I didn't notice what exit you use. I tried to copy all that you showed on the screen and I got: Strategy produces unfinished trade(s) - trade that is not closed until the very end of trading. Any hint, please?
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Cheers Ali. I've been running the RSI 2 live with some SQX data mined filters and it is robust so far.
I am happy to read that
Excellent stuff. That's good manual optimisation of the RSI-2 with market conditions.
Couldn't agree more
Hi, real question, how the big hedge funds can't make more ROI than index, while there is strategy like this one doing 73% yearly return, backtested over 20 years of data?
the biggest restriction to hedge funds is capital, you can't invest 100 billion in any strategy on any timeframe, the next biggest restriction is volatility. Big investors (like pension funds, etc.) don't like to see more than 6-10% volatility per year, so that restrict the return a lot.
Still there are few hedge funds that do print money year over year for the past 30 years, like renaissance, de shaw, etc.
Excellent! Everyone is waiting for the course to get the insights into the regime filters 😉
It will be open to discord members end of year and to subscribes in March
@@StatOasis
Is it available for the server registered?
RSI is my all time fav Especcialy on the daily
One of the. Best for sure
Excellent content
thank you
You are welcome!
Thanks a bunch Ali
The content you share are very useful and enticing
I bet most of your followers are eagerly waiting to enrol in your master class.
Do you have a timeframe for the start of new enrollment?
Thank you for your kind words
The new launch is tomorrow for discord members, and for Algo MC list subscribers in March/April
great video and info.
can you make these R3 and RSI2 tests on crypto and on lower time frames too please?
Thanks
Will add it to post ideas
@@StatOasis
Great.
Thank you!
@@StatOasis
sorry, i forgot to ask : why do you use the SMA200 and not the EMA200?
wouldn't EMA save you from some failed trades (at least from those at the end of a trend) ?
Thanks!
EMA200 could be better, using either one will work. it is just a filter.
The best channen of trading & investing!
Alli which period can i use for volatility do you mean Historical volatility?
You can use ATR or historical volatility, or even the vix but you have to be consistent and not optimize the volatility measure per instrument.
I use my own indicators that are fixed regardless of instrument and time frame
@@StatOasis excellent thank u!
Sir, It appears that in strong market, NQ goes up more(and faster) than e mini Sp500. When the market is doing poorly, NQ comes down more & faster compared to e mini. Does it make sense that if market is up strongly for say 2- 3 days in A row, then sell NQ & buy e mini AS PAIR TRADE, and wait. Say 3 days later market is falling strongly 2-3 days in A row,--then reverse the pair trade. Any suggestions for other indices pairs trades, comments ?
Of course you can test it and see if strategy is possible, there are some indicators that measure the diversion.
I have some videos about pair trading on the channel
Thanks!
What are the market type filters- how do you identify sideways vs bear and volatility? Thanks 🙏
I use two universal indicators that I built, one is for direction and the other is for volatility, and both represent market regime for each traded instrument. The indicators are part of Algo Masterclass, you can subscribe here to be notified when enrollment is open: go.StatOasis.com/MC
Ali, do you have a service where in you recommend the trades when they show using your best RS2 strategy. If yes please let me know the price for it
I understand that not everyone can or has the time to build strategies, but i also don’t believe in trading one strategy.
Am creating a portfolio (multiple strategies) with trading signals that can be copied with a broker so its a lot easier to match the performance. Please subscribe here statoasis.com to be notified when its up and running
Great video! Im curious, what other instruments are mean reverting besides SPY?
Most stock indexes are, of course there is a way to test the markets
Been testing alot of older strategys the advantage if they still work there is alot of Oos Testing 👍
yes, I love old strategies for the same reason.
Hey Ali, Do you have workflow related video, or can you make FX workflow not workflow tutorial but something which put strategies to robust and then refine?
Yes, that is the objective of the Algo Masterclass, to automate the process with workflows.
Subscribe to the waiting list to be notified when enrolment is open go.statoasis.com/MC
Can you do this video with JultiCharts please?
I really want to adjust my RSI_2 code
will add it to post ideas
My question is whether you have tested which is the best filter to add to Connor RSI. I currently use the 200 day MA but am interested if there is a better one.
each filter will perform differently, so for example you might make less money but lower drawdown, or more trades, but same net profit, etc.
Most filters fall under volatility or direction.
watch next video it shows you another way to get better results.
Why not trade the Connor RSI long and short on individual stocks with long being above the 200MA and short being below the 200MA. This way you can always be market neutral.
you can, testing is always the final verdict.
But simple answer is shorting stocks cost money and not all available all the time. also stocks drift up. You will notice it is very easy to build long strategies on stocks/indexes and hard to do the same on the short side.
also unless you have the platform to rank stocks, then it is hard to trade all signals on all stocks even on long side only.
Good strategy Ali. Where do we find the indicators for StatOasis Direction?
the direction and volatility indicators which make the Market Regime will be part of the Algo Masterclass. you can subscribe here to be notified when enrollment is open: go.StatOasis.com/MC
Thanks Ali. What indicators you use for the market regime's calculation?
I built my own indicators for direction and volatility. Both of them make Market Regime
thanks for video, but are the rules for each market phase?
the video is posted a while ago, can you elaborate more
@@StatOasis Sorry, I wanted to know more what are your settings for MD1, MD2, MD3, MV1, MV2, MV3 etc...
Nice strategy, but i did not see any stop loss in that strategy?
Usually I don’t use stop loss, is it mentioned in the video?
@@StatOasis No it is not mentioned in the video. For me a no stop loss strategy means a 100% win rate of trades. Why it’s not the case un that strategy?
in general you are right, but RSI2 strategy is very fast, usually 1-3 days and you can check that from the open drawdown
Can this be used in Crypto trading by what time frame?
It can be used on any instrument but you will find easier on indexes because they ten to mean revert
@@StatOasis what indexes?
sp500, nq100, d30, R2000
10k is not enough to play with this strategy. Does it work with 1H TF ? Did you check? Regards - Kris
You can’t trade emini with 10k but micro futures are doable, of course only Monte Carlo testing will determine the correct capital.
It might work on 6 or 4 hours. The lower you go the more noise you will have to deal with
@@StatOasis Hi, I didn't notice what exit you use. I tried to copy all that you showed on the screen and I got: Strategy produces unfinished trade(s) - trade that is not closed until the very end of trading. Any hint, please?
@@kankrz RSI2 > 75
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