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    My back-testing is too good to be true. What am I missing?

    Another question: I know what the bid/ask/last prices represent, but in Think or Swim, these prices are completely different from the prices show on my candles. What gives?
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    My back-testing is too good to be true. What am I missing?

    Thanks. Yeah, I try to keep that in mind. If the rise/fall hit my stops during testing, I have to be careful.
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    My back-testing is too good to be true. What am I missing?

    NaifWonder, I appreciate these kinds of posts. If you have time for a in-depth criticism, I would be very happy. My intention is not to defend my current system, but to create a system that works. In response to your post, I can't claim the system will work in the future. I think a system has...
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    My back-testing is too good to be true. What am I missing?

    Jordanf, that's really helpful. 1. You're right - I'm not looking at rollover at all and that is something to think about. My original goal was 40% profit per year, though, so with that in mind, the system is more than okay. 2. That's also true. If I want to short a green candle, but my...
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    My back-testing is too good to be true. What am I missing?

    The backtest has 29 trades so far, but you're right - it's fairly small...and although I put "20 days" into the field, it's showing 30 days of data: from 2010/11/08 to present.
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    My back-testing is too good to be true. What am I missing?

    I see. You're saying if I am making profit of tiny price changes - one to two cents - probably the model is unrealistic. Well, that's great news. My profits generally come from larger movements over the course of many days.
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    My back-testing is too good to be true. What am I missing?

    Intradaybill, I feel a lot better about these results now. Thanks for doing that.
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    My back-testing is too good to be true. What am I missing?

    The attachment is on the first page. Here is the link to save you the click back and forth. To give a forward-tested example of my entry system: http://i.imgur.com/GVzfA.png You'll see that I entered $2 from the best price for 12/07 so far, which opens at 7 PM on the previous day and...
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    My back-testing is too good to be true. What am I missing?

    The Sparrow Trading System prices at $1 billion US. Yes, it's just that good! Oh, and we only accept payment in unmarked bills. Anyway, I've already explained my strategy for free in the OP. So there. :p If anyone is interested in the Reddit post, you can find it here. Thanks LeeD...
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    My back-testing is too good to be true. What am I missing?

    If anyone is interested in the Reddit post, you can find it here. Thanks LeeD! 1) This point is really helpful. I understand what the Bid/Ask prices represent, but I don't know if I should be using them to decide where I enter and exit. What price should I have my orders execute at...
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    My back-testing is too good to be true. What am I missing?

    I'm not sure what you mean. Unless I am misunderstanding you, the "not" is a typo, right? What I mean by "too good to be true" is that the first year, I have over 800% profits recorded. The second year, over 2800%. The third year, over 1500%. If that's not too good to be true for...
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    My back-testing is too good to be true. What am I missing?

    Please see the attachment for my spreadsheet. I'm back-testing a trading system and, as you can see from the spreadsheet, the results are spectacular. It's hard to believe I am doing this right. Can you guys help me find issues with how I am trading? I'd be really grateful! I'm...
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