Quote from Mr.Consistent:
I had a look at the breakthrough system of yours, the "SuperBands with linear regresion analysis" and it has shocking -49.38% maximum drawdown !!!!!!!!!!!!!! :eek:
I wouldn't trade such system even with "your money". Oh my God, your system will take your equity down to a half, and you're claiming to be someone that knows what he's talking about. I guess if I'd question your comments then it would make me "the most uninformed or simply arrogant trader" as you have pointed out, so I'll rather keep my comments to myself. 
It's funny that you think I endorse it. Why else is it freely available then? It's a timeless experiment, but one that has managed to beat all of the ten thousand plus systems ever to be published on WL. If you ever get a chance, it looks pretty good on the NAZ100 with 1% of sizing. The drawdown is from 10% per trade up to 100% position sizing, which, obviously is something I don't recommend. That is to say, 100% in a single stock is not recommended, but it can be done with ETF's as you essentially hold 100 securities or more at once.
Since you probably aren't well versed in understanding these statistics on WL, I'll save you the trouble.
SuperBands, with Linear Regression Analysis since 1/1/1996 on the NAZ100
Long + Short
Starting Capital $100,000.00
Ending Capital $1,102,590.63
Net Profit $1,002,590.63
Net Profit % 1002.59% Compared to the S&P's profits of 37%, this is oustanding, and would beat BRKA over that time period as well.
Annualized Gain % 19.81% Say whatever you want. Good luck finding a system with this long of a backtest and that high of an APR
Exposure 8.89%
Cash Interest $127,905.48
Margin Loan Interest ($5,561.16)
Total Commission ($231,451.11) 0.01 per share
Number of Trades 29,285 high statistical significance
Avg Profit/Loss $34.24
Avg Profit/Loss % 0.75%
Avg Bars Held 1
Winning Trades 16,396
Winning % 55.99%
Gross Profit $2,503,521.50
Avg Profit $152.69
Avg Profit % 4.42%
Avg Bars Held 1
Max Consecutive 169
Losing Trades 12,889
Losing % 44.01%
Gross Loss ($1,623,275.20)
Avg Loss ($125.94)
Avg Loss % -3.91%
Avg Bars Held 1
Max Consecutive 225
Max Drawdown ($153,103.25)
Max Drawdown Date 11/20/2008
Max Drawdown % -23.87%
Max Drawdown % Date 8/31/1998
Wealth-Lab Score 169.5453
RAR 222.7115
Profit Factor 1.5423
Recovery Factor 6.5485
Payoff Ratio 1.1307
Sharpe Ratio 1.2275 This is probably where experience tells you something. Put about this way. If this is the most profitable system ever to be published, then it is the benchmark against which you should compare yourself. This tells me a long term sharpe above 1 is very good for systems.
Dghost Annual Volatility % 15.8595
Excess Return 19.4676
Ulcer Index 5.5967
WL Error Term 13.491
WL Reward Ratio 1.4683
Luck Coefficient 7.5119 This is low for a system so old.
Pessimistic Rate of Return 1.4147
Equity Drop Ratio 0.2617
A very simple system. Buy in 0.25% increment starting at 5.5% below the 10,1.5 bollingerband if the linear predicted value is greater than the band. Sell on the open the next day. Maybe it's not so simple, but it's done perfectly well for 12 years, compared to the S&P's NP of 37% in that time.
I feel like my other systems are better on a risk adjusted basis. Anyway, if you can get a system that looks this good "and can actually be traded" you'll be rich. That's the only goal really, is to be rich. This one has so many technical challenges that it's just plain easier to time the market than sitting at a computer all day.
Swing trading daily systems have made me more money in two years than in three years of my start percentage wise.
So definitely need to have a system. You just won't know your risk at all without one.
Again, that's the best backtest people can produce in WL and still be verifiable. I'm sure there's others reading this that can throw out their systems measures, but we won't actually know if they aren't just saying if priceclose(bar+1)>priceopen(Bar+1) then buyatmarket(bar+1,'');
