Different systems for different instruments

[TraderZones]

Quote from Corey:

Again, back-testing is a tool. When properly employed, it can be a great addition to your tool-box. But just like any other tool, you have to know when and how to use it.

The main problem is, that most people have no idea how to do this. This behaviour, combined with people who get enamoured of TA indicators, Elliot Wave, Gan, fib levels and other beliefs, goes a long way towards explaining why 90-95% of traders lose. Things like bad trade&money management, slippage-commission-fees, etc. is another big chunk of losing.

In other words, few traders will ever find an edge in these things. it is almost hopeless for the "backtesters."

 

[vikana]

In my experience it's acceptable that a particular model only works on a subset of markets.

I have no expectation that my ES/NQ systems works on bonds and currencies for instance.

But I *do* expect that a system designed for e.g. semi conductors, should work well across a broad portfolio of semi-stocks, not just a chosen few. I always trade the entire basket and never selectively disable individual stocks unless I can find a particular reason to do so (involved in M&A would be one such exception).