I've been coding a few ideas of mine into a trading system using Amibroker for EOD data.
I've a few questions I'm hoping a few of you out there might be able over general advice.
I'm not that creative so I find the whole process quite difficult but I find that I can come up with some reasonable entries but the system drawdowns are always awful (~50% or more). If I then just apply a trailing stop (say 3*ATR(14)) to take me out of the trades I then find that my profit drops dramatically and the drawdown still isn't that low.
So I was wondering how others who have been through a similar process generally go about trying to build a successful system? Should I be working more on my Sell criteria (which I find very difficult) or maybe the high drawdowns are a consequence of the type of system I'm developing?
If you design a trend following system, would you still use it in a non trending market (say such as now for the ASX) or do you (personally - or your system) recognise this and step aside?
One final thing, if my plan when trading is to look at the data during the evening and then issue the buys the following day, should I always use the Amibroker setting of: SetTradeDelays( 1, 1, 1, 1);
ie, does this then replicate my plan?
If I leave this as: SetTradeDelays( 0, 0, 0, 0);
then it seems to give me far far better results but then is this because I'm putting on the trade on the day before I've actually received the signal to buy?