This is why sim trading sux! (But what about prop?)

[ironchef]

And there we are, at the same quandary.

Backtesting has become completely pointless now. Did the "backtesting" from 2009 to 2017 work? Really? It did? Cool!

Did the backtesting from 1929 to 1986 work? It did? Really?

Did all of those backtests apply those same rules to 2018? Did it work? Really? Prove it. I bet it did not. It is why so many people blew up this year. There has been unprecedented point movement in 2018. In my head, percentages mean nothing in derivative back testing...Only number of ticks. If I am blatantly wrong, prove it.

So true. I could always find a strategy that worked very well backtest historical data.

 

[fan27]

Kinda like pilots taking training in a sim before they fly a commercial airline? A total waste of time and effort?

Kinda like Nasa training in simulators. Another total waste of time..money...effort?

Kinda of like practice in footbal simulating a real game? Total waste of energy and conditioning?

Apples and oranges. A trader is able to define the conditions under which they will enter and exit trades. The above activities you listed contain hundreds if not thousands of scenarios the participant will have to be ready for. In trading, basic software packages can automate signal alerts to order placement even if the trader is not running fully automated algos. Improved reaction time offers nominal value because you will never compete with the algos. I would be interested in hearing from a trader who spent significant time on a simulator and then transitioned to being a profitable live trader. What exactly did they do while trading on the sim? How much time was spent?