Backtesting on daily bars on NT

[sheepsucker]

Hi,

So, I am seeking advice on ET Or maybe some tips on the subject.


Well, the issue I am having is that my automated strategies are built using daily bars.
So when I am backtesting with NT and daily bars that gives me quite few trades over several years.
In a sense few trades should in theory make the backtesting less reliable, but since its using daily bars... should give it more reliability.

Anyone had a similar issue and found a good solution to it?

 

[sheepsucker]

Example of a system: http://img508.imageshack.us/img508/5955/ss20110420100749.png
Profit factor 10, DD 3750
Makes 48k in 4 years.
But problem is there are only 18 trades in 4 years.
Been thinking about "validating" the system using other instruments to see that it is really a generally occurring price pattern.

 

[intradaybill]

Get more data and test your system out of sample. This is a long only system and usually this type of systems are biased.

 

[abattia]

If you haven't already, take a look at this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=212824&perpage=6&highlight=statistical significance&pagenumber=1

Hope it helps!

 

[sheepsucker]

Quote from abattia:

If you haven't already, take a look at this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=212824&perpage=6&highlight=statistical significance&pagenumber=1

Hope it helps!

Hadnt seen that thread. A good one, tnx for the tip!

 

[sheepsucker]

Quote from intradaybill:

Get more data and test your system out of sample. This is a long only system and usually this type of systems are biased.

Yes its true its long only. But the market moves differently up and down so I had to have different strategies for each direction.

 

[ronblack]

Quote from abattia:

If you haven't already, take a look at this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=212824&perpage=6&highlight=statistical significance&pagenumber=1

Hope it helps!

A major collection of misunderstandings by various usuals who are self-proclaimed experts on a subject they hardly understand, even remotely.