My back test results

Quote from d08:

I look at monthly drawdown and maximum drawdown. High exposure systems, I'm looking for triple digit returns with a DD not over 35% over a 10 year period. For low exposure, return should be double that of max drawdown. Take a good look at the equity curve, it shouldn't flat-line for significant periods as it's mind numbing to trade something daily for a year that doesn't produce anything.
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How can i visually/interpret an equity curve with data provided in my excel spreadsheet. I hate to say it but i don't even know what an equity curve is... :( #feelingashamed
 
Google is your friend. There are also tutorial on Excel, specifically how to translate data to a chart.
 
Quote from d08:

Google is your friend. There are also tutorial on Excel, specifically how to translate data to a chart.
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Thank you d08... you are very helpful... lets get married and go on a honeymoon to Antartica
 
Quote from Huskeez:

Thank you d08... you are very helpful... lets get married and go on a honeymoon to Antartica
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Let's do it.

But in the meantime, you need to look at ways how to limit or exclude the losing trades.
 
Right now I'm guessing your position size is a percent of current account value. It's a lot easier to understand your backtest results if you use a fixed size, that way you will get a more normalized result. Try it and see how the equity curve looks.
 
Quote from goodgoing:

All of them? .....:)
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Pretty close, by using options when you are near to taking a lose on the position and keep min of two weeks left on option keeping though just a few days, often times I do this and on overall position come out profitable. But I generally trade using weekly data cause breaking out of last weeks highs/lows, I am expecting a huge push in one direction or the other.

Unless I have min of 3000 sample size over twenty years for long term trading, no way would I ever consider it a viable method, anything less showing huge gains are usually a pipedream. Once I get to breakeven stop, testing shows me trailing stops cheats me out of huge gains. I normally take $1-5 a share on half my position, and remainder go to breakeven. I watch the pivot highs to show when market is slowing down as the distance between one pivot high to next is tighter, and only then I start thinking the trade could be over, but still don't use a stop. When fifteen minutes before last trading day of the week is below last weeks low, the trade is exited. Only way I can get the most out with the least amount of time watching the markets. Life is good.
 
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