We are currently developing trading models for various trading programs with our new product Ranger. By the way, we use the same version of Ranger that we license to our clients.
Our development process starts with the most simple strategy variant and then proceeds through various layers of complexity.
At its most basic, Ranger can be configured as a basic range breakout strategy. Consider the following results. We tested this range breakout variant through our proprietary walk-forward analysis (WFA) matrix on NASDAQ futures from 1-1-2007 through 12-31-2017. The performance for the Walk-Forward Analyses produced the following results – the total for all WFAs was a loss of $385,410 with an average WFA loss of $35,037. Not terribly inspiring to say the least.
However, having confidence in our trading technology and research methods we “slogged on.”
Next step. Consider, then, the same strategy and variable range with the application of one of
our proprietary filters. That same WFA matrix produced a profit of $629,850 and an average gain of $57,259.
What a difference a filter can make! That particular filter is our proprietary Trend Indicator. This indicator can tell us, among other things, when a market is quiet. The results above are the difference between an unfiltered range breakout and a range breakout from a quiet state.
Ranger is an EasyLanguage program which runs in TradeStation. Locked it is $2,500 and unlocked $5,000. Trend Indicator is one of three proprietary indicators which are included with the unprotected version.
If you would like to put Ranger to work for your own trading email me at rangerql@pardocapital.comfor further information. The included Tutorial will have you up and producing trading strategies immediately. Ranger also includes six finished and tradable stock index strategies which can get you started. They are actually quite good and more than just “starters!”
Wishing you a prosperous and fulfilling 2019!
Warm Regards,
Bob Pardo
p.s. Be sure to ask about the limited time discount for QuantLabs.net clients.
We are doing a rare interview with one of the masters in trading. I am currently collection smart and sophisticated questions for him. Leave a comment below to your question potentially answered at Facebook event link below. Details to follow so check the comments https://www.facebook.com/events/762833620753134
This will be streamed live on the Facebook quantlabs net page under Videos tabl at
Thursday, January 10, 2019 at 4 PM – 6 PM EST or 3 CST
Hi there,
You are invited to a Zoom webinar.
When: Jan 10, 2019 4:00 PM Eastern Time (US and Canada)
Topic: Interview with Bob Pardo
Please click the link below to join the webinar:
https://zoom.us/j/728994467
Or iPhone one-tap :
US: +16699006833,,728994467# or +16465588656,,728994467#
Or Telephone:
Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 or +1 646 558 8656
Webinar ID: 728 994 467
International numbers available: https://zoom.us/u/aARX5KpQE
1. You wrote an article for Future Magazine called ‘How far away is the Holy Grail machine’ in 1985. How did you foresee the future back then compared to where it is today?
2. From your article of Gann Lines and Angles of 1992, outside of software have the basic principles evolved in the basic concept since that time? Do you believe that candle patterns or harmonic patterns can be used for early reversal signs?
3. With the article on Stop Placement Affects Trading Performance of 1984, do you believe that today’s current forex and retail brokers are corrupt with stop hunting? Are there are any clean (or less) corrupt brokers out there? This is especially true with APIs for brokers? eg. Interactive Brokers
4. In one interview article, the article stated: There were no trading screens or other market paraphernalia anywhere in sight. If they existed elsewhere on the premises, Robert was not anxious about checking up on them or his trading progress. He had the serenity of one possessed of total faith in his system’s ability to hum along just fine without him.
Is this still true? How do you get away with it with now mobile apps and everything at your fingertips?
5. Are you primarily still a futures trader? Or have you expanded into other asset classes? If so ,any current ones you see enormous potential with? Do you also see a rebound in certain commodities with the current market? Do you trade options? Why or why not?
6. In the same above interview about you said: Because the S&P is so volatile and dynamic in its own right and swings so much, though, what works there may not work in other markets.
Do you think the current computer algos are going to make the 2019 global extra market really jittery? Would you even say the computers have completely taken over the markets?
7. Do you believe in portfolio optimization or portfolio theoretical techniques (e.g. Markowitz)? Do you believe in different ways to throttle trading account allowance based on portfolio performance (.e.g Kelly Criterion) Or how about daily target moves against the amount capital you are willing to put at risk?
8. Do you think emerging market equities will be the place of opportunity for 2019? 9. Would you say you are strongly constrained as similar to how a CFA is mandated? (e.g. you have your own trading standards or will allocate portfolio weightings to certain sectors or asset classes)
10. If you have a particular position going into range bound (or flat), would you tend to cut it right away to find a higher performing asset? How often are you re-calibrating your portfolio? What doest the re-calibration depend on?
11. What are some of the more predictable exit methodologies you believe in ? e.g. ATR? Would you apply standard take profit or stop loss? Or would you treat it more like a trailing stop? Or any of these at all?
12. Are you a believer in fundamental, news sentiment, or even macroeconomic events as drivers for the assets you watch? How many assets would you typically watch in a standard flat or uneventful trading day?
13. Standard question: Are you a pessimistic or optimistic when it comes to machine learning in pricing of an asset? How about applying it to areas like portfolio sizing or portfolio optimization? Would you ever consider using it for something like bid/ask analysis at high speed level (e.g. tick)?
Or: statistical anomalies are not parameters. thats what quants/algo people do..find these patterns and figure out ways to capitalize on them.
16. Among all your trades on average, what is the % of mix of long vs short?
17. How many strategies/algos would you say you have in your arsenal? How many can be traded ALL the time profitably regardless of market regime?
18, What is the standard drawdown % threshold before you cut the instrument entirely from your active portfolio?
19. Is it easier or harder to raise capital for a system or fund these days? Are you finding investors/captial allocators are much more jaded than in the 80s or 90s? When was the easiest time period to allocate and why?
20. What is your honest view of those so called trading gurus you find on Youtube or Facebook?
NOTE I now post myTRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
This is from Robert Pardo the famous author of http://pardocapital.com/bios.php5
Hello Fellow Traders and Investors,
I am very pleased to introduce you to Ranger, a unique software program to develop and trade robust and quality trading strategies. It goes far beyond that which is typically available in this genre. In fact, Ranger is capable of empowering all levels of trader from the dedicated beginner up to the advanced algorithmic trader. Yet, if one wants to take advantage of our professionally researched and robust trading strategies that too is readily available.
As you can see, Ranger is not just your typical trading system software. It begins as a range breakout strategy. However, it goes far, far beyond that. It is fair to say that Ranger is capable of creating dozens if not hundreds (or more) of uncorrelated trading strategies.
Ranger is a professional tool. It is built in the same style and to the same demanding specifications as our other in-house strategy development programs that we have used to create our trading programs. In fact, we are currently using Ranger to develop additional strategies for our Renaissance portfolio.
We have finalized our first Ranger portfolio – SI $125,000. This is a portfolio of nine strategies on three stock index futures. In addition, there are also a number of smaller portfolios derived from these strategies for different account sizes and purposes.
In any case, we are very pleased with the performance. The SI portfolioproduced a cumulative return of 479%, an annualized rate of return of 18% and a drawdown of 14.4%*. The SI Portfolio is included with Rangerand is ready to trade immediately.
Ranger’s pro-forma track record is based entirely on walk-forward analysis. This track record was developed with the same procedures and to the same standards that we used to create Renaissance.
Ranger is a unique product and an extraordinary value.
