Backtesting with $100,000

[vincegata]

Quote from intradaybill:

Sure it matters in many cases, if not most. Risking 2% of 5K is not the same as 2% of 100K. Depending on capital a trading method can be a loser or a winner. Just think about it. For example, trading 1 ES contract per 20K versus 5K?. Does drawdown ring some bells?

+2

 

[tim888]

Quote from Pekelo:

So I don't see the difference between 50K or 100K.

Bernanke should hire you for QE3. Stay away from trading...

 

[Pekelo]

Quote from tim888:

Bernanke should hire you for QE3.

Where can I fill out the application? Those government jobs are sweet!

By the way when I occasionally check out systems on C2 (futures only) I don't give a crap about their starting capital. I look at % and points made per day per contract. I can decide later how much capital should be used for a particular system.

So when backtesting, the starting capital is really not the most important issue....For stocks it might matter, but for futures, I want to see the results first, risk optimazing comes later...

P.S.: By the way I too agree with Lucias (who happens to be on my Ignore).