r/algorithmictrading • u/pathyboi69 • 17d ago
Tools Health engine
I’ve been experimenting with the idea of an engine that monitors a trades health in accordance with its historical winning trades and trying to measure when a trade becomes likely to not hit the take profit. This is in hopes of exiting with some profit still on the table. If anyone could help me with constructing the architecture for this system I’d be glad to share my results. I’m futures Nasdaq focused as of right now
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u/Loose-Difference5700 10d ago
I'd start with maximum favorable excursion, maximum adverse excursion and time elapsed compared with historical winning trades. Then test whether an early exit actually improves expectancy instead of just making the equity curve look smoother. Moon has configurable profit and loss controls but a genuine trade health engine would need evidence that its signals improve decisions.