How will you rate this system?
- Thread starter macgibby
- Start date
Hmmm...you know, that's not my style to trade that many shares of a stock, so...I honestly don't know.
Another question though...can you have the system pick out just 1 stock per day and test it that way?
Unless you're at a prop shop with the ability to use a lot of leverage, I don't see how you'd have the capital to trade 5000 shares of each of 10 stocks. Do you have an equity curve graph?
Another question though...can you have the system pick out just 1 stock per day and test it that way?
Unless you're at a prop shop with the ability to use a lot of leverage, I don't see how you'd have the capital to trade 5000 shares of each of 10 stocks. Do you have an equity curve graph?
I would say if you have enough capital to trade 5,000 share position sizes across 10 positions, then buy a few more years of historical data.
Even if the system only generates half the net profit as the backtests (and the backtests are almost always overly-optimistic), it should pay for itself pretty quickly.
later,
-rob
Even if the system only generates half the net profit as the backtests (and the backtests are almost always overly-optimistic), it should pay for itself pretty quickly.
later,
-rob
JMHO but I don't think you can trade that system. Just looking at the 1.31 profit factor. I feel that is way too low and you can do a lot better. I have made some great systems with the profit factor of over 3 or 4 with some great ideas but could not be profitable trading it tomorrow. I now hold backtesting with a grain of salt. I feel a good system can not be coded into a strategy but it is more of a feel and understanding for the market. I believe that is why a lot of people lose money. They look at well if this and this happens I buy and its just not that simple. Just my 2 cents though. GL to u
J
J
macgibby, without you disclosing further details of your 'system', it's hard to know what's really going on. Maybe if you scale down a bit so that you can use less capital? The $17K drawdown says...be careful. The fact it's a daytrading system is positive but I'd need to see more evidence. What if you made it 40-50 stocks, for instance? Or just 2-3? What if you 'only' traded 500 shares of each stock, for instance? Test as many possibilities as you can in order to get a better idea of the system's 'edge' and that might give you more/less confidence to trade it.
good luck!
good luck!
Quote from macgibby:
Thanks for all your comments BUT anybody can tell me if these results too good to be true or it can be done?