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Hi,
To make a trading system profitable, we need a good money mangement
system in-addition to a good signal detection, verification and
interpretation system.
I find it very difficult to automate good money management
strategies. Sometimes, you have to enter the market at MOO (previous
session's close price), sometimes at High Of Day/Low Of Day etc.,
Sometimes you have to Pyramid/Pillar your losing positions and then
close out your losing positions at break even price. Sometimes you
have to have wide stops, sometimes narrow stops, sometimes no stops
(combine options with the straight underlying instrument). Sometimes
the data is not accurate and so your back-testing results are bogus.
It is just too complex to automate all of them. The best I can do is
to record my trades and co-relate with my trading report from my
account.
I do not believe the back-testing report created by the software. I
don't think it is prudent to base your trading just on these back-
testing results. You have to test it in the real-world for about 1
year with real-world money-management strategies or atleast a
simulation account. It is a very slow process... one needs a hell
of a lot of patience, especially when you see your simulation account
grossing returns of over 20% a day...
Maybe the new portfolio tester...
Regards,
Pal
--- In amibroker@xxxxxxxxxxxxxxx, "jtelang" <jtelang@xxxx> wrote:
> > After all, the bottom line is to make money! And not to second
> guess
> > what you think might occur next. The market is always right!
>
> Amen!
>
> I have a random question. Speaking of making money, how/what kind
of
> profitable systems have people in this group developed using AB? Do
> we have any heavy hitters who've written systems showing
_consistent_
> 100+% return systems using AB? Anyone interested in results of such
a
> quick survey?
>
> I myself am currently testing a system which shows following, which
> I'm in the process of confirming as I keep finding bugs in it :-) -
>
> Trading type: Stocks (only long plays)
> Period: Short term, 2-5 days in a trade.
> Avg annual return over last 5 years of data: Around 30%
> Max system % drawdown: 20%
>
> I know its certainly not a high flying system by any means, but at
> the same time I also read everywhere that most traders end up
losing
> money, so at least by that standard it sounds like a good one to
> start with. :-)
>
> Would love to hear statistics from other experts here. I'm sure
> there're lots of them...
>
> Jitu
>
> --- In amibroker@xxxxxxxxxxxxxxx, "Joe"
<run_for_your_life2003@xxxx>
> wrote:
> > Yeah, trust you signals because if they give you the wrong signal
> > you can only blame yourself for your mistakes.
> > At the moment a lot of investors thinks this market will tank in
> > October! I still buy according to the signals on my graph!
> >
> > Will the majority be fooled this month thinking a downmove in
> stocks
> > and in reality happens in November. I buy my stocks according to
my
> > signals! Very rarely listen to news on television or the
newspaper
> > and do a much better job on investing now.
> >
> > After all, the bottom line is to make money! And not to second
> guess
> > what you think might occur next. The market is always right!
> >
> > --- In amibroker@xxxxxxxxxxxxxxx, "palsanand" <palsanand@xxxx>
> wrote:
> > > Hi,
> > >
> > > READ NOTHING, LISTEN TO NO ONE, EXCEPT YOUR SIGNALS... SIGNALS
> > TALK
> > > TO YOU, SOMETIMES THEY SCREAM...
> > >
> > > LEARN TO BUY ON BEARISH NEWS AND SELL ON BULLISH NEWS
> > >
> > > Regards,
> > >
> > > Pal
> > >
> > > --- In amibroker@xxxxxxxxxxxxxxx, "palsanand" <palsanand@xxxx>
> > wrote:
> > > > Hi,
> > > >
> > > > THE TREND IS YOUR FRIEND BUT NOT WHEN IT IS GOING TO END....
> > > > CUT YOUR LOSSES SHORT & LET YOUR PROFITS RUN....
> > > > THERE IS A TIME TO GO SHORT, A TIME TO GO LONG, AND A TIME TO
> GO
> > > > FISHING....
> > > > BUY LOW, SELL HIGH....
> > > > BUY EAGERLY, SELL RELUCTANTLY....
> > > > YOU CAN'T CHERRY PICK SIGNALS, YOU HAVE TO TRADE EVERY DAMN
ONE
> > OF
> > > > THEM....
> > > >
> > > > Regards,
> > > >
> > > > Pal
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