Futures Strategy converted to a FOREX Strategy

[birdog]

Hey folks:

I was seeking those who have good experience with this to chime in when able. If one has a successful automated strategy for the futures market (such as CL, ES, 6E, etc), what are some of the parameter/settings adjustments to the strategy one would consider when applying to the FOREX market?

If they strategy runs OK on FOREX market but not nearly as good as with the futures market what are some best practices or considerations to be made to convert the strategy to do equally well or better in the FOREX market. Of course, I have been working on several parameters to make the adjustment as well...what are you thoughts?

The futures market ticks in 10 whole cent increments or quarter cent increments or similar. The FOREX market ticks in pips which are a HUGE difference than 10 full cent moves or quarter cent moves. The pip is 1/100th of just 1 cent (penny). So, I would image part of the adjustment would have to take this into consideration (among perhaps some other variables/settings). I think this is a big one. Of course the FOREX is volatile but very liquid.

What are folks opinions on this...love to hear...

@koganam would love to see what your opinions are on this if you have some insights...

Side: If there are any input on conversion to stocks that would be nice to hear as well...



Greg

[koganam]

Hey folks:

I was seeking those who have good experience with this to chime in when able. If one has a successful automated strategy for the futures market (such as CL, ES, 6E, etc), what are some of the parameter/settings adjustments to the strategy one would consider when applying to the FOREX market?

If they strategy runs OK on FOREX market but not nearly as good as with the futures market what are some best practices or considerations to be made to convert the strategy to do equally well or better in the FOREX market. Of course, I have been working on several parameters to make the adjustment as well...what are you thoughts?

The futures market ticks in 10 whole cent increments or quarter cent increments or similar. The FOREX market ticks in pips which are a HUGE difference than 10 full cent moves or quarter cent moves. The pip is 1/100th of just 1 cent (penny). So, I would image part of the adjustment would have to take this into consideration (among perhaps some other variables/settings). I think this is a big one. Of course the FOREX is volatile but very liquid.

What are folks opinions on this...love to hear...

@koganam would love to see what your opinions are on this if you have some insights...

Side: If there are any input on conversion to stocks that would be nice to hear as well...



Greg

Strategy success may be more of a matter of the strategy being suited to the market type rather than to the specific market. A strategy that is designed for and works best with a trending market will work with ANY trending market. Similarly a strategy that works best in choppy, mean-reverting markets will work in any such market.

The onus then is on finding a market/currency-pair that acts in the manner of whatever you run your initial tests on, or else adjusting the strategy to work in the market conditions that prevail.

There are futures that trend better: match their strategies to a forex pair that acts the same way. Conversely, match the forex strategy for choppy pairs to a strategy that works best in choppy futures markets.

[birdog]

Thanks for your input Kog...smile.