Sell a strategy
- Thread starter m&m&m
- Start date
Quote from m&m&m:
Regarding what I have right now â yes, changing different parameters I can have more than 2% per trade, holding period unfortunately not just 1 day, but not months either
Currently my calculations show potential profit at about 30%/year with 9-11 profitable months a year. Iâm sure I can improve it and just wanted to know my options when time comes.
Your system is just barely marginal in backtesting. In reality a professional wouldn't give you a penny for it. Why would someone want to take on a multiday hold for a possible payoff of only 1-2 percent per trade? There are many equity strategies available that are much more profitable. I would say that if your system isn't returning at least 3% net per trade in backtesting, with an average hold time of 3-5 days, then you need to toss it and start over. Because anything less than that isn't worth the risk of tying up capital.
I agree, i should have given more realistic example.
But my question was not about a strategy but about the mechanics - how it (the sell) can be accomplished at all???
here is something about a strategy now
It was back tested for 1998-2002 years only for S&P500 stocks.
Average Profit Percent: 5.7%
Average Holding Period: 2 weeks
Average Win/Loss ratio 2.1/1
Profitable months â 9-11
Average positions/year â 450
Average profit of winning trades: 15.1%
Average lost of loosing trades: -14.0%
Picture shows one year random test run based on 300 and 450 trades a year, 1000$ bets with 10.000$ initial capital