|
PureBytes Links
Trading Reference Links
|
<SPAN
class=521002903-29102003>I've been wondering, could I trade a system with 50%
average gain per year since '95, and max system drawdown of 40-50%. even if I've
seen that in backtests beforehand, could I really look at that kind of drop in
my account and still believe I was doing the right thing? or would I think it'd
finally just stopped working? and if I am able to ignore that much drawdown, how
would I know if it really *had* stopped working?
<SPAN
class=521002903-29102003>
<SPAN
class=521002903-29102003>by the half-the-gain-twice-the-drawdown tolerability
rule, this is a non-starter.
<SPAN
class=521002903-29102003>
<SPAN
class=521002903-29102003>dave
<BLOCKQUOTE
>Defense
... Yep or as I've said it's not what you make, it's what you keep.
DD's are killers from lots of aspects not just in terms of what they do to
your account balance but also what they do to ones ability
psycologically to trade and stay with systems that do
work.
Yahoo! Groups Sponsor
ADVERTISEMENT
Send BUG REPORTS to bugs@xxxxxxxxxxxxx
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
-----------------------------------------
Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx
(Web page: http://groups.yahoo.com/group/amiquote/messages/)
--------------------------------------------
Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
|