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In a message dated 9/23/98 11:03:31 AM, tmorge@xxxxxxxxxxxxxxx writes:
<<This is a very lucid post and I agree with your comments. How would you
suggest
a person [that is relatively uneducated about trading] go about kicking the
tires on a trading system that they see advertised? Let's choose a system from
the webpage in your post. >>
To my knowledge there is no way to tell with any degree of certainty if any
system will work in the future. Unfortunately, like I said in my post, it is
basically a leap of faith in spite of anything else you are told. Check out
the experience and industry reputation of the developer. Do they have a
reputation of all smoke and no substance? In my opinion, the basic logic of a
system has to make sense and the rules must be simple and easy to implement.
Also, unlike many system vendors (including Omega) we publish the complete
TradeStation reports BEFORE you purchase any system. You at least get to look
at some hypothetical results to get some feel for the activity, holding
periods, etc and see if it is a system you might have use for and be
comfortable trading with real money. Upon request we will also provide trade
by trade data before purchase.
We also give a very prominent (and sincere) warning that you can not rely on
hypothetical or actual past results. Of course this disclaimer does not
releive us of the responsibility to our clients to provide carefully designed
systems that we think have a good chance of working in real time. The
documentation on each system not only reveals all the rules and the code but
it shows how much optimization was done and explains why we think the
parameters we selected are expected to be robust. No exaggerated claims, no
hype (except the hypothetical performance). Our systems are not expensive and
our clients know that they are taking a great deal of risk when they buy them
and we hope they trade them with their eyes open. We even give away a free
trading system as a sample of our work so our clients will know what they
should expect when they buy a system. That's about the best we can do. If
you or anyone can think of a fairer way to market new systems let me know.
I apologize for the commercial sounding nature of this response but there is
an overwhelming posting of negative opinions about system vendors on this list
and I feel entitled to show that some of us are doing our best to do a good
job. Some talented people on this list should never buy a system. Others
with less knowledge and talent may benefit from buying a system designed by a
knowledgeable professional who admits that he has never discovered the
inherent order of the markets.
Chuck
http://traderclub.com/
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