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Support and resistance points can be in place for years. In testing a
system, I agree with Rick Mortellra that 5 years is a minimum of data. You
want to see how your system reacts under the different cycles of the market
and the stock. Remember you are testing how well a system stands up over
time, not the stock.
Someone that does not test a system well, will end up loosing because they
have looked at an optimized view.
I would look at the average win vs average loss, drawdowns, time in trade.
over win/loss ratio.
Richard Estes
http://www.intop.net/~restes/
-----Original Message-----
From: Harley Meyer <meyer@xxxxxxxxxxx>
To: rickyp@xxxxxxxxxx <rickyp@xxxxxxxxxx>
Cc: metastock-list@xxxxxxxxxxxxx <metastock-list@xxxxxxxxxxxxx>
Date: Wednesday, February 18, 1998 4:25 PM
Subject: Re: Whats Hot??????????
>As far as back testing, I feel the last year is most relevant. Anything
>beyond that can be less meaningful, since you are trying to evaluate a
>specific type of price pattern with your trading system. You also need
>to be aware of price patterns that just don't work for your system. I
>would also add that the biggest plus is a good win / loss ratio.
>
>Harley
>
>
>
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