Re: MS' Maximum Profit System - Can it be edited?

[David Neal Parsons <parsons@xxxxxxxxxxx>]

My understanding of the Maximum Profit System test is that it isn't a
system at all. It is an artificial construct that perfectly buys every
low and sells every high. The closest I could come to duplicating it is
with the following system test:

Enter Long:

(C < Ref(C, -1) AND C < Ref(C, 1)) OR
(C = Ref(C, -1) AND
 C < Ref(C, -2) AND C < Ref(C, 1))

Enter Short:

(C > Ref(C, -1) AND C > Ref(C, 1)) OR
(C = Ref(C, -1) AND
 C > Ref(C, -2) AND C > Ref(C, 1))

There are no stops. Trade delay and interest rate should be set to zero
in options.

It misses 2 days at the beginning of the chart because of the way the
Ref() function works. The key here is that a buy/sell signal is placed
based on tomorrow's price -- Ref(C, 1). If we knew tomorrow's price, we
wouldn't need any system tests!

Does this shed some light on your question, or have I missed the point.

David.