What's the catch?

[Tyler_EFT]

Our new software has automated execution from TS, VB, C++, and several other programming languages. It also allows you to trade multiple systems and multiple accounts. It makes it easier to be disciplined and follow your system.

 

[sunnyskies]

Originally posted by inandlong
It is that easy. The simplest system I know constructs a horizontal line at the current price and is long above it and short below it. You cannot refute it. Check it out for yourself. Overlay a horizontal line on any chart, any time frame. Is there profit opportunity or not?
</quote>

Would you be so kind to provide an exit method as well? Otherwise just another useless post. Thank you.

 

[aphexcoil]

Sunny,

In accordance to this KISS method, draw another line above or below the first line. This line is your exit.

aphie

 

[ddefina]

Or a trailing stop, or wait till close. My favorite is the LOD/HOD exit that only certain brokerages have. Gets you out at the exact extreme of day. :eek:

 

[jaan]

Originally posted by sempai
Here is the dilemma: I believe the problem may be just that the markets have changed for the month of August. But is it just that? Do I change my rules, or stop trading for the rest of the month, or try to trade through it and hope my system starts working again?

do what we do: decrease your size when in a slump.

- jaan

 

[jboydston]

Originally posted by jaan
do what we do: decrease your size when in a slump.

- jaan

By averaging down when you're in a slump... aren't you compounding your losses?

I try to increase size after a loosing day/trade/week and decrease size after a winning streak.

 

[nitro]

Originally posted by AAAintheBeltway
...
I disagree with the idea expressed here by one well-known guru that backtesting is useless. If a system can't make money in the past, certainly that tells you something and generally it is worth a big multiple of whatever you paid for the backtesting software.

I agree with whomever the aformentioned guru is: backtesting is worthless.

A "system" that works should work on all markets without optimization - it should spring from your head, and when you trade it, you will see that immediately it makes money. Of course you will monitor it for weakness, as all systems have a child like quaility to them [that is both their strength and weakness,] and adjust accordingly [if possible - I don't know if I could program a computer the "instincts" that I use when trading]

nitro

 

[Magna]

Originally posted by jaan
do what we do: decrease your size when in a slump.

Originally posted by jboydston
By averaging down when you're in a slump... aren't you compounding your losses?

I try to increase size after a loosing day/trade/week and decrease size after a winning streak.

jboydston,

Jaan didn't say anything about averaging down, simply decreasing his size when in a slump. Your idea of increasing size after a losing streak is bass ackwards and very dangerous (sounds like the gambler in Vegas doubling his bet when he's down). As to decreasing size after a winning streak a good argument can be made for that approach as most people have their biggest losses after a big win streak.

 

[aphexcoil]

Magna,

Averaging down in futures and stocks are two totally different things -- indexes can't go bankrupt, and if they do, you'll have worse problems than just being dead broke.

Some systems incorporate averaging down -- I know the system I am developing makes use of averaging down on my purchase of ES contracts as long as I am still above my stop. I think it is all about position management in this index-futures game.

aphie

 

[AAAintheBeltway]

Originally posted by nitro


I agree with whomever the aformentioned guru is: backtesting is worthless.

A "system" that works should work on all markets without optimization - it should spring from your head, and when you trade it, you will see that immediately it makes money. Of course you will monitor it for weakness, as all systems have a child like quaility to them [that is both their strength and weakness,] and adjust accordingly [if possible - I don't know if I could program a computer the "instincts" that I use when trading]

nitro

Backtesting and optimization are different things. I am not a fan of optimization. But what's the harm in seeing if a system can make money on historical data? How can the knowledge you gain be worthless?