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You are exactly right Sir!
I think what's best amongst a few things is to choose the simplest of tools that work for you as a trader and "work it till it drops"
The best these 'back-testing' (and most scanning tools) can do is give you a fair idea - I always 're-test' the results myself and ultimately make the trading decision myself. No matter how much intelligence the program was run on - at some point you would need to!
Sometimes in flipping the test results you get a better trade; so if you ask a system to generate buy orders, sometimes check the sell orders 1 out 4 times, you find an excellent buy among them.
My tot: people take this back-testing seriously because that is what the "majority" do and the "majority" is ALWAYS wrong! Always!
Go make money sir!
In equismetastock@xxxxxxxxxxxxxxx, "sebastiang77" <sebastian77@xxx> wrote:
>
> I have been testing AlphOmega Elliott Waves with the system tester. On some stocks it is fairly accurate at having 90% times winning trades.
>
> This seemed too good to be true until I decided to trick the system.
>
> Take EQN.TO for example. On August 4th a Buy signal was issued based on a 13% bullish wave. So running the system tester it places an order at the open of next day, August 5th.
>
> Here is where things get fishy.
>
> On August 5th, the stock hardly moved up and closed below yesterdays close so the System Tester decided to sell on the same day.
>
> Now I faked the data for August 6th, making it a good day. Where the open was the close of August 5th but it hit a higher high and ended up closing higher than the previous two days.
>
> Running the system tester again and this time it doesn't sell on the August 5th, it sells on the 6th. So it basically cheats because it uses data from the future.
>
> Now someone tell me why people take this back-testing seriously if it fudges the results
>
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