Back Testing the Rat Method?

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Michael Hans
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Back Testing the Rat Method?

Postby Michael Hans » Wed Aug 08, 2012 1:01 am

[align=center]Back Testing the Rat using MT4[/align]

Has anyone taken the time to build an EA for the purpose of back-testing the Rat Method? Has anyone seen the equity curve of that EA? If you have back-test results of the Rat method for a period greater than 100 days, I would appreciate very much if you would share it here, so that I may see it.

I'm interested in seeing the equity curve for the M5, M15, M30, H1, H4 and D1 time frames. I realize that this site is all about the Rat, so I thought I would check here first, as I am almost certain that somebody here must have produced such an EA by now.

Thank you!

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Postby bredin » Wed Aug 08, 2012 3:57 am

cant be done, exits are based on data not available to MT4 (ie tick data)

G.
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Postby Michael Hans » Sun Aug 19, 2012 1:11 am

Huh? Can't be done? Why would anyone trade a strategy that can't be encoded? If a strategy can't be encoded then by definition, it is illogical at the core. Whether one takes the time to code it, is a completely different question - as that may require a lot of complex code, depending on the complexity of the trade logic. In other words, if the trade design is logical, then it can be coded.

Data not available to MT4? I routinely back-test using Tick Data and Multiple Time-Frames in MT4 and I do it all the time. That's been available for quite a while now - just google it.

A tick is nothing more than a market price at which a transaction was made. the Close price is either the Bid, or the Ask - Spread. So, at some point, in order for the High or the Low of any TF to be recorded, the Tick has to equal either the Close somewhere along the way.

Since no one has volunteered to post the EQ of the RAT Methodology, I'll go ahead and take the time to build the EA myself, test it and then post the results here inside this thread. The rules are extremely simple and the build should take no more than a few minutes to complete - I probably should have just done it myself.

I'm shocked that anyone would think that such a method (any trading method) can't be coded, and I am even more shocked that people are trying to trade a method without having an idea of the historicity behind its efficiency.
Anyway, I digress.

I'll have the results posted by EOD on Monday. I've come down with a headache today, so I won't be building and EA right this minute.

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Postby bredin » Sun Aug 19, 2012 9:10 pm

Good. Fantastic.

The entry method is extremely simple to code.

TROs definition of exit isnt.

Mathematically define "Take what you can get"

Good luck tho.

G. (Edit: I take it back, since youre clearly one of SB's fellatio trolls)
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Postby newscalper » Mon Aug 20, 2012 3:01 pm

:lol:

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Postby Jalarupa » Mon Aug 20, 2012 7:17 pm

bredin wrote:Good. Fantastic.

The entry method is extremely simple to code.

TROs definition of exit isnt.

Mathematically define "Take what you can get"

Good luck tho.

G. (Edit: I take it back, since youre clearly one of SB's fellatio trolls)


This little infomercial popped into mind when I saw this thread...

http://www.youtube.com/watch?v=36qoyo9pBbs

Is it dick measuring season already...?

Sheeesh just when we got over last time's shenanigans...

Its like a never ending cycle of balls

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Postby newscalper » Mon Aug 20, 2012 8:16 pm

It's all in teh secretz market DNA alpha beta theta delta phi gamma omega flux capacitor

Out with the tin foil hat here we go

Nothing to do with buyers and sellers, oh no, it's an alien conspiracy!

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Postby Relativity » Mon Aug 27, 2012 5:37 am

Generally speaking, the method is profitable. But...

I speak from experience : the rat method is more than just logic based. There are certain discretionary parts where EAs cannot really take over, yes. e.g news, market interventions, option barriers... etc.

Give it a go at the EA. But I warn you that the rules aren't really all there in black and white. Looks logical, but it 'works' and it doesn't 'work' too. There are more 'rules' than expected IMO.

There's the part where there's a plan A / B / C, 'depending on market conditions'. Watch TRO's youtube videos. Also, think about where does he live... it gives a big hint what timing window is this method more profitable.

These are the things that TRO will not say. I understand why he would do that : I think he can't be bothered anymore. Its a good thing actually. Why should he give us everything on a plate? Does he owe us anything? Nope.

Also, for traders to mature correctly, one should self discover as much as they could to come up with their own trading rules. The discovery process IMO is critical to blood traders to become traders. What TRO did is to give the basic template. That, I thank him for that. Then, I work off it.

So specifically speaking : I don't take the rat rules directly as it is. As much as I wanted and tried, it doesn't work for me. However, I make my own rules + create my variation of the rat method + consider the 'unspoken rules' + take the concept of trading D1 extremes / rat trading / 20 pips from D1 high or low / whatever its called. It does work!

So I've made my own EA to test my trade logic. Pretty good. I do give TRO credit for the concept thou.

I am aware of MT4 tick data being available, so no worries I am at your side for this one.

Michael Hans wrote:Huh? Can't be done? Why would anyone trade a strategy that can't be encoded? If a strategy can't be encoded then by definition, it is illogical at the core. Whether one takes the time to code it, is a completely different question - as that may require a lot of complex code, depending on the complexity of the trade logic. In other words, if the trade design is logical, then it can be coded.

Data not available to MT4? I routinely back-test using Tick Data and Multiple Time-Frames in MT4 and I do it all the time. That's been available for quite a while now - just google it.

A tick is nothing more than a market price at which a transaction was made. the Close price is either the Bid, or the Ask - Spread. So, at some point, in order for the High or the Low of any TF to be recorded, the Tick has to equal either the Close somewhere along the way.

Since no one has volunteered to post the EQ of the RAT Methodology, I'll go ahead and take the time to build the EA myself, test it and then post the results here inside this thread. The rules are extremely simple and the build should take no more than a few minutes to complete - I probably should have just done it myself.

I'm shocked that anyone would think that such a method (any trading method) can't be coded, and I am even more shocked that people are trying to trade a method without having an idea of the historicity behind its efficiency.
Anyway, I digress.

I'll have the results posted by EOD on Monday. I've come down with a headache today, so I won't be building and EA right this minute.

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Postby TheRumpledOne » Wed Aug 29, 2012 2:31 pm

There are no "unspoken rules". Most traders think a system must have entry rules and exit rules. Exits, especially stop loss, have nothing to do with the method or system you are using to enter. Exits are a part of money/risk management.

Ponder that for a while...
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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Postby Michael Hans » Fri Sep 14, 2012 1:10 am

bredin wrote:Good. Fantastic.

The entry method is extremely simple to code.

TROs definition of exit isnt.

Mathematically define "Take what you can get"

Good luck tho.

G. (Edit: I take it back, since youre clearly one of SB's fellatio trolls)



Funny. At first you say it can't be done. You then provide path for doing it. You then follow that up with the fact that you can't mathematically define take what you can. You then refer to SB.

a) Any method that has no logical and/or mathematical basis for determining Buy/Sell/Hold decisions, is by definition illogical on its face and unworthy of use as a tool for being profitable in the markets.

b) Trading like a Rat will cause you to go broke. It does not work. The equity curve proves that much at a minimum.

Rules that are not really Rules, are no Rules at all. Its called Guesswork, aka: A Hunch. Trading on a Hunch, long-term simply will not work. There are precious few successful (long-term) Hunch Day Traders taking multiple positions throughout the session.

And, yes. The CollaborativeFx.forumer.com, will be back up shortly. There needs to be somewhere on the net where the New Guy can go to get solid baseline information that will actually help him/her grow as a Trader, and not as a wannabe pretend artist.

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