Hello,
I have explored the modules in Day Trading Strategies for beginners where you can backtest the strategies such as PEAD, gap up and gap down, and scalping on Blueshift. The returns of the suggested code aren't very good. Can anyone advise on any materials that can advise on how to best optimize each strategy or combine multiple strategies to have better returns?
Thanks!
Hi Sean,
The codes for the said strategy can be run on different stocks, with a different standard deviation parameter and by changing the thresholds for when to take a position.
Multiple backtests with a different combination of stocks and parameters will help you identify which combination works best for you.
In addition to running a single strategy, you can run multiple strategies, like for example, you can have a Bollinger Band mean-reverting strategy working along with a gap up gap down strategy or a trend following strategy. The amount of capital allocated to these different strategies may vary on the basis of their recent performance, or other analysis/rule you may deem necessary.
There is no one size fits all when it comes to quantitative trading, and considerable efforts go towards fine-tuning your strategy parameters!
Hope this was helpful!
Do let me know if you have any more questions!
Thanks Singh for the advice!