The code for the Ghost Trader is designed more as a template than a complete trading strategy. Some trading strategies incorporate the success of the last trade signal in the calculation/determination of the next trade signal. We have tested several methodologies that only initiate new positions after a losing trade. Some traders feel that there exists a high probability of failure on the next trade signal if the last trade was closed out with a profit. This approach is much easier to trade than historically back test. It’s easy to keep track of your trades and then skip the hypothetical trades that don’t meet your criteria. In our example of waiting for a losing trade before initiating a new trade, you would simply stop trading your account after a winning trade and start paper
trading and wait until you have a loser on paper. Once a paper loser occurs, the next trade would be initiated in the real world. The code for Ghost Trader demonstrates how to keep track of simulated trades and only issue the trades that meet a certain criteria.