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PureBytes Links
Trading Reference Links
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An excellent book on backtesting is the 1992 classic by Robert
Pardo, "Design, Testing, and Optimization of Trading Systems." It's
a short book that outlines the rules concisely, simply and clearly.
It will answer all your questions and then some.
--- In equismetastock@xxxxxxxxxxxxxxx, sebastiandanconia
<no_reply@xxxx> wrote:
> Eric, lots of statistical testing is necessary if you don't know
WHY
> your method works. If your buy and sell rules are based on an
> arbitrary mathematical formula (like most TA indicators), you
really
> do need to do a lot of tests because it could just be a
coincidence
> that the indicator gives you "winning" entry/exit signals. But if
you
> already understand why an event is occurring/is going to occur you
> don't need as many trades before you know if your method is valid.
>
>
> Luck,
>
> Sebastian
>
>
> --- In equismetastock@xxxxxxxxxxxxxxx, chichungchoi
<no_reply@xxxx>
> wrote:
> > Does anyone know how many trades the evaluation needs to be
sound
> > statistically?
> > Thank you in advance
> > Eric
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