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goodoboy
Junior Member
Posts: 38
Registered: 27-7-2021
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Hello Peter,
I have a question please as I am considering running GSBsysES 1.3,1,4,1.5 together. But I am concerned the systems are correlated if I run all of them
together.
Does near 1 mean the systems in the link below are heavily correlated and not recommended to run the all 3 systems together?
https://prnt.sc/M4Q7qpiKjyi5
Thank you so much for the response.
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admin
Super Administrator
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@goodboy, yes these systems are significantly corelated,
however you could argue that intead of 3 contracts on one system, bettter to do 1 on each of them.
But lets say you had 4 other systems
you could do
1 contract on gsbsys1.3
1 contract on gsbsys1.4
1 contract on gsbsys1.5
3 contracts on system x
3 contracts on system y
3 contracts on system z
You also need to look at negative correlation, not correlation.
loosing trades tend to be small choppy moves that reverse and dont trigger many systems
winnings trades tends to be big moves that trigger many systems
Thanks received (1):
+1 Ketil at 2022-12-19 02:44:30
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goodoboy
Junior Member
Posts: 38
Registered: 27-7-2021
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Quote: Originally posted by admin  | @goodboy, yes these systems are significantly corelated,
however you could argue that intead of 3 contracts on one system, bettter to do 1 on each of them.
But lets say you had 4 other systems
you could do
1 contract on gsbsys1.3
1 contract on gsbsys1.4
1 contract on gsbsys1.5
3 contracts on system x
3 contracts on system y
3 contracts on system z
You also need to look at negative correlation, not correlation.
loosing trades tend to be small choppy moves that reverse and dont trigger many systems
winnings trades tends to be big moves that trigger many systems
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Thank you so much Peter that makes perfect logical sense to me. Thank you for responding.
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brk
Junior Member
Posts: 38
Registered: 19-3-2023
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| Quote: Originally posted by goodoboy | | Quote: Originally posted by admin | @goodboy, yes these systems are significantly corelated,
however you could argue that intead of 3 contracts on one system, bettter to do 1 on each of them.
But lets say you had 4 other systems
you could do
1 contract on gsbsys1.3
1 contract on gsbsys1.4
1 contract on gsbsys1.5
3 contracts on system x
3 contracts on system y
3 contracts on system z
You also need to look at negative correlation, not correlation.
loosing trades tend to be small choppy moves that reverse and dont trigger many systems
winnings trades tends to be big moves that trigger many systems
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Thank you so much Peter that makes perfect logical sense to me. Thank you for responding. |
@goodboy, where did you find those strategies? I looked at the top of the post but only see gbssys2.
I wanted to check the correlation (and negative correlation) of those systems to my own ES systems.
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admin
Super Administrator
Posts: 5060
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@brk,
I pulled those systems very early in the year. That's why you cant find them.
Due to 4++ year outstanding track record, they were attracting too much attention.
One of my many concerns was traders would put a lot of capital in the GSBsys1.x es system and fail to put capital in what I think is the newer and
better systems with shorter track record
and greater diversity.
Trading is dangerous and to be poorly diversified is unwise.
Just after I pulled them, GSBsys1.e ES systems went well into max draw-down. So im glad I removed them, though wish I had done it earlier
Thanks received (1):
+1 brk at 2023-04-06 13:33:30
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