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Dimitri,
A second note:
By using the equity line and Moving average crossover as a signal to
start and stop trading, would it then be possible to graph this new
modified equity line showing just those trades and not the entire system
.
Anthony
dtsokakis wrote:
> Anthony,
> I thought to begin this thread with a method I use for years, even
> with MSEXCEL the ...happy 99 times [I sold the whole thing when the
> portfolio equity crossed its 15-day MA, after a long extra-bullish
> period, no doubt about it]
> Do you critisize the cross EMA40 method or the Equity itself ?
> In the second case, we will loose the method [I hope to see other
> methods too].
> I would like your opinion for this EMA40 idea.
> Of course, any other criticism is always appreciated.
> The Smoothed Stochastic CCI Equity curve is another [perhaps
> interesting] subject.
> I will post later the full formula to see better.
> DT
> --- In amibroker@xxxx, Anthony Faragasso <ajf1111@xxxx> wrote:
> > Dimitri,
> >
> > Thank you for continuing this Thread, It is an important part of any
>
> > traders success or failure.
> >
> > Strategy and Money management are the two most important parts of
> any
> > trader's overall plan.
> >
> > The best entry rule is useless without proper risk control. You can
>
> > almost perfectly analyze a developing market situation, find the
> best
> > strategy to exploit that situation, and be almost perfectly correct
> in
> > your forcast of what that market will do, and yet still lose money
> if
> > you do not use proper risk control and money management.
> >
> > There are so many variables which constitute Money management , that
>
> > just pinning it to an Equity curve crossover would be dangerous for
> most
> > traders. In the 3 gifs that you have posted , the Drawdowns in the
> > equity curves appear to be excessive even though the equity curves
> are
> > above the 40 period EMA , how do you protect yourself from these
> > drawdowns ? Are you in that much cash to absorb these drawdowns ?
> >
> >
> > Anthony
> >
> >
> >
> > Dimitris Tsokakis wrote:
> >
> > > Another [interesting] example.Athens SE General Index had a nice
> > > fitting to the Stochastic CCI system from A [Aug 2000] toB [April
> > > 2001]. Take the Profits [nearly +60%] and stay in cash.The 40-day
> EMA
> > > cross at B is more than clear.The system is no good anymore for a
> > > quite long period.Slightest attempts for the Equity red curve to
> > > exceed its EMA were very dangerous until mid December 2001.A new
> > > fitting period seem to begin and give some interesting profits
> [+10%]
> > > till Feb 2002 and out of thesystem again and again.The actual
> Equity
> > > curve should point 17000, the equity without this type of
> management
> > > is at 7276.The all-season "blind backtesting" has no relation with
>
> > > real trading conditions.Any excellent system may change.You
> should be
> > > there to stop it, instead of insisting with some fanatism and
> loose
> > > the profits and a part of theinitial equity in the name of the
> holly
> > > system.Dimitris Tsokakis
> > >
> > >
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>
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