i found the holy grail

[dumb_mother]

Quote from dumbgai:


-Results are not adjusted for commissions.

this could be a huge difference

 

[TT1]

Quote from dumbgai:

-This system trades liquid stocks exclusively.

-The strategy has a both long and short component. It is designed to be market neutral.

-The strategy uses only one technical indicator, along with price action.

-Stocks are held from one to five days.

-Results are not adjusted for commissions.

What is the one technical indicator that you use?

Thank You!

 

[peilthetraveler]

Quote from dumbgai:


how did i do?

Easy answer. You paper-traded those profits. Anyone can make money on paper. I turned 20k into 700k TWICE on virtual stock exchange. (inside 6 months)

 

[d08]

Quote from peilthetraveler:

Easy answer. You paper-traded those profits. Anyone can make money on paper. I turned 20k into 700k TWICE on virtual stock exchange. (inside 6 months)

All can't make money of paper. Validity of the system depends on the complexity (e.g. the more complex the system the less likely it will work in the future) and already mentioned number of trades.
Suggest you backtest on different markets and with more historical data. I think you'd need double (triple?) that annual return with the same risk profile to call it a holy grail

 

[Capablanca]

I know the strategy you are using. Add commissions and slippage and it dies. Add more people who know about it and you'll be losing money on it.

Next!

 

[d08]

What type of strategy is it?

 

[ljmlmvlhk]

Quote from dumbgai:

how did i do?

Hows it done ?
Easy !

The software determines the buy and sell signal at the end of the bar and you code the software to buy and sell at the beginning of the bar.

Then take out the commissions....

Very easy with smoke and mirrors dumbguy.

 

[TraderZones]

Quote from dumbgai:

returns:

2001 (last 9 month): 100%
2002: 107%
2003: 105%
2004: 167%
2005: 148%
2006: 219%
2007: 135%
2008 YTD: 220%

max drawdown: 13%
# of drawdowns over 8%: 2
# of stocks held each day: 20


how did i do?

You are kind of missing a few stats aren't you? Profit Factor? Sharpe?

In 2001, when at a low point, atarting there to leverage the market heavily could also achieve 100% annually, with one trade

Hold&Hope systems on hundreds of backtests don't have much value...

 

[mind]

Quote from dumbgai:

-The strategy has a both long and short component. It is designed to be market neutral.
...
-Results are not adjusted for commissions.

a market neutral strategy tested without adjusting for
commissions. meaningless.

 

[vingbel]

Along with the other comments that this strategy doesn't take into account real trading, I'd add that we can't comment on it because there isn't enough posted about it. So let's end this discussion and turn to trading strategies that give us some meat on the bones.