When to Stop a Trading System

[SimpleMeLike]

What systems did you buy or lease now ? I can remember you asking about sources and you were very happy about my mentioned websites. Are they only on ES and NQ or ?

Hello TrAndy2022,

https://www.worldcupadvisor.com/#advisors

I did not buy this. I really like them, but cost is too much per month. I like Marek Chrastina and Marco Vironda Gambin systems. I personally talk to Marek. Nice gentleman. Marek won the world trading algo championship like 3 times.

These systems are my ES and NQ algos I built myself and will run to make money.

 

[SimpleMeLike]

This is a very good question.
But.
In order to determine when to stop trading a particular system, you need first to start trading it and make sure you can make money out of it.
And then, you can ask yourself when should you stop trading it.
The hardest part is to find that profitable system. I would suggest you to focus on that part first (although you might already be there, but the fact that you provide backtesting results as opposed to real results lead me to think that this is not the case...)

The backtesting results that you provided have no relation with your question (if the real goal of this thread is to get answers to your question and not to brag about backtesting results of your systems).

And if you want my opinion on your question, using x times the backtest results drawdown is not a good solution. I'd say to stop trading your system once your minimum profit expectations are not met anymore over an X period of time (usually expressed in term of months). The details depends on your system and your trading style.

Hello rb7,

Thanks for the response. Yes, this is just backtest.

I will be running the systems beginning of the year 2023. Lol, No I am the very last person to be bragging man. I have nothing to brag about. Just trying to get educated from my peers.

Good points you mentioned.

 

[ab_trader]

Let me try, may be you like one of the options:

* run monte carlo analysis, define the worst case equity curve and stop when you hit it. can be better than to 2-2.5x drawdown (seems arbitrary)
* if live drawdown duration is longer than drawdown max duration from the test
* if live series of losers is longer than the series of losers from the test

 

[SimpleMeLike]

Let me try, may be you like one of the options:

* run monte carlo analysis, define the worst case equity curve and stop when you hit it. can be better than to 2-2.5x drawdown (seems arbitrary)
* if live drawdown duration is longer than drawdown max duration from the test
* if live series of losers is longer than the series of losers from the test

Good Evening ab_trader,

Thank you so much for the response.

Very wise response. Yes, I agree 2-2.5 times historical test drawdown was just a guess I used.

Your response is very logical and makes good practical sense. I will write in my notes. Thank you!!