Hello whitelake, thank you for the clarification. I'll try to put it in my own words:
- TA sell: you exit the equity part of the AIM position
- AIM sell: you sell (taking vealies into account)
- AIM buy, not confirmed by TA: buy order amount is reserved
- AIM buy, confirmed by TA: you buy
- TA buy, not after a TA sell: you spend the whole order reserve
- TA buy, after a TA sell: you re-enter the equity part of the AIM position
Do I have this right? Then we might split your method into two parts: the first part concerns the TA delayed buys, the second the pure TA action you mix in.
Some remarks for a low flying goose:
- It might be difficult to keep the official account and the shadow account synchronized.
- AIM buying: you could miss the best opportunity for buying while you wait for TA confirmation. This might be no problem when the order reserve contains two or more buys, but with just one buy in the reserve, buy levels may get unattractive. That the confirmation comes rather late is illustrated in your graph, where all buys come rather late.
- TA buying and selling: this is just that, with all the risks concerned. You use four indicators, and I would suppose such an indicator to be rather slow, with all the risk of whipsaws involved. Indeed, your graph alrady shows a whipsaw: a 16% loss from a sell at 13.6 and a buy back at 15.8. Then you sell again at 15.8 and you are able to get back in a bit lower. You may be glad that TAIM did better than AIM, but this is the kind of action I don't like to see myself.
I suppose you are now testing this on more stocks and over longer periods (several years). I will be very interested in your findings.
Regards,
Karel
