Original subtitles

in this video we'll go over an

example of how you can fill out

the skeleton key external with a working

strategy so first things first i have

the pm rp and bebe w p

added onto my charts here for settings

on these indicators which yes it will

matter as they will directly

pull the indicators as they are for

the skeleton key external i will for

the pm rp have a thirteen length

e a type and a twenty signal

may by the way within sba and

then for the b-bbee dbp it is

going to be default thirteen to thirty

two

and may type is s m a

and length five from there i will

add a completely new skeleton key external

and we're going to go one by

one and fill things out and i'll

make a strategy with you as of

right now so okay let's wait for

it to load and here we go

alright

so first things first we'll start it

off or i just want to acknowledge

that in the background here for the

skeleton key external strategy tester will have

no data of course i mean there's

nothing there to be testing off of

alright so first things first i'm going

to enter when the crown crosses to

the upside

okay then i will move on to

the next section for threshold for threshold

a i'm going to sect i'm going

to select pm rp plotline which is

right here and i want it to

be less than or equal to eighteen

for our entry

then from an ex threshold we're going

to plot the exit as well which

is going to also be running off

of the p or p plotline and

i wanted to be above seventy seven

for the exit and this will actually

already give us some results down here

although this is not to the extent

of the strategy that we're going to

be running but as you can see

we finally get

some actual results so i mean it's

not terrible but certainly not a strategy

that we'd want to employ as it

is so next i want to work

on the slope section and i want

to look at the bb to bp

moving average and a one we actually

can't see it on my screen but

it is down

here you'd just be to b p

moving in which one select that and

i want to only enter when it

is negative

once we get that we can move

onto the next section but let's see

how that has changed things a little

bit okay already looking a little bit

better on the equity curve things starting

to switch around here now let's go

optimize the risk section so in this

particular strategy

i just want to be using the

basic risk stop and i will also

select first clothes as well but let's

see how it changes it so right

now net profit is eleven thousand four

hundred and first close ticked let's see

if that improves things

and this is what you're gonna be

doing majority of time is just waiting

and it does fourteen thousand two hundred

net profit equity curve is getting a

little bit more smooth there and producing

more net profit which we like but

max drawdown is getting quite high so

let's move on to the next thing

that we can change and

we'll move on to the optimization section

as far as the max stop-loss goes

i am going to select one point

three enable if you do not select

enable it will not enable

as the name would imply let's see

how this changes things okay net profit

going up a lot now and much

smoother equity curve although percent profitable has

gone down but that's okay we're here

for net profit although i mean theoretically

it is a preference decision but i

would imagine most people are going to

optimize for net profit and then as

you can see the max drawdown

it has gone down significantly here big

time and now let's ah let's put

in a a max take profit let's

go two point one as my notes

suggest this is going to be a

good level and that raises things up

just a little bit more and now

we're looking pretty good for the um

for the current period and i think

that's where we'll end off on this

one just a very simple strategy um

i do want also show you um

i want to show you the deep

back tester here so deep back testing

is where things get a little bit

more interesting because you can cover more

data

in fact i'd say pretty much any

strategy that you are considering to employ

should be deep back tested

you know least at least a couple

cycles unless if you just really want

a hyper optimize for like a very

specific segment but in this case i'm

gonna go i'm gonna go very far

back here and it will take some

time to load but i do just

want to shake his this relatively fast

let's go back to just january twenty

sixteen so this is a eight year

back tester over at your bag test

and let's see how long one this

takes to populate and then to what

the results are

because sometimes you'll find that a strategy

performs really well in you know the

most recent period but when you go

back further it's not so great and

we want to avoid that if we

are looking for something that we can

employ for a longer time and as

you can see here things um well

actually not bad um but it does

look like it takes a big step

up starting around trade number five forty

six

so what's actually going to the list

of trades and see what happened at

that time when things really stepped up

so was five forty six got some

scrolling to do what time was that

okay

and almost there

few more and here we go okay

so around five forty six was ah

the beginning of twenty twenty one so

this strategy really took off during the

most recent market cycle starting in beginning

of twenty twenty one and really started

to print a lot of profits from

there before that it was

was it was fine i mean it

was profitable certainly but not as impressive

of course so as you can see

you know the fur that the further

that we go back the more information

that we do get and you can

decide you know whether that is relevant

for you or not anyways

will end things are actually one last

thing you know one last thing um

let's now

look at the plot for performance table

and so what this is going to

do

yes i wait for things to populate

let's get rid of this is going

to plot a performance by month for

this strategy so you can get an

idea of what month and what year

the returns looked like and where the

big months were on the wind side

and the law side max drawdown months

and um and and bigger

return months as well so

from there it is it is up

to your judgement up to your preference

as to how you wanna optimize things

but you have plenty of tools now

to get more granular data on what

strategy you're looking at so i'll leave

things on that note a relatively simple

strategy here but as you can see

simplicity is fine simplicity is good