I am starting a new C2 strategy that trades equities using an artificial intelligence model. The plan is to do end of week reviews which will help me identify trades that could have been avoided if the model had access to some information which was present before trades were entered into.
Hopefully, having other traders chip in with their insights will help me iterate faster on what information sets will be useful to incorporate into my model.
- Currently, the strategy enters 20 long and 20 short equity positions on Mondays at the market open and exists on Friday close to market close.
- Entries are structured to have equal weights as much as possible.
- All trades have a stop loss that is 10% away from the entry price representing a 10% max loss per trade.
In backtests, the strategy could go into prolonged drawdowns for months (1-3) and some drawdowns were as large as 40%.
I have been trading the long leg in a trading212 account for the past 3 weeks. The walk-forward results match what the model predicted so I am confident the model should do well going forward but time will tell.
I am looking forward to getting some useful comments with time.