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[amibroker] Re: NDX / QQQ - Can it be traded ? - Questions



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Lack of compounding can't help but negatively impact the results and 
the longer the period of time the system, any system is viewed over 
the more impact it'll have.  How could it be any other way ?  

As an example if you have an initial equity of $10,000 and a system 
that produces 100% CAR and trades once per week and you turn it into 
a constant dollar trading system the results you get are as follows:

Average trade = 2 ^ (1/52) - 1 = 1.34 %

In year one you get - 52 * 1.34% = 67.1% return and you now have 
167100.

In year two you get the same dollar return i.e. $6,710 but that is 
now a significantly smaller 40.1% and so on.


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