5 Comments

Great article! During your backtest, did you also only take trades at HH:00 and HH:30 as indicated in the paper? Seemed a bit random when reading it and doing some backtest many times a big chunk of the move is lost due to waiting for those specific times.

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Yes, I followed the paper. I also tried exiting immediately (not waiting for the 30’ windows), but that didn’t work. Trading only during these intervals solves the noise problem. I believe using other frequencies (e.g., every 28’) will also work… but need to test

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I'm curious what kind of size you are trading and whether you're entering with limit orders? Since you mentioned IBKR and whenever I market into or out of a position with more than a few contracts on NQ the slippage is more like 4-8 ticks instead of 1.

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IS THIS AREA BOLLINGER BND ??

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No, it is not. The noisy area is thoroughly explained in the paper

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