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if you are using daily bars, then how would the system determine if the
percentage win or the percentage loss happened first. to put another way
how does your system know the order of the ticks in the bar? if a bar opens
and then trades lower first and then it trades higher, did you know that ts
will take the best case scenario? testing like this should be dismissed as
invalid testing.
many pitfalls await the system tester
>i have recently started backtesting a system ive been working on. it is
>strictly an EOD system. last night i backtested every stock in the sp500
>from 1995-1998. my total trades totalled 295 (round turns). i had 159
>winning trades and 136 losing trades. currently the only money
>management system is 10% profit or a 10% loss. which ever comes first.
>no trailing stop. the day after the signal i enter the trade if it hits
>my predetermined price and when the price bar hits my stop(either at a
>loss or profit) i exit the next bar at the open so it goes without
>saying that i dont always make or loose 10% but over a large period of
>time i dont think it would matter much. My question is this? How does
>this compare to others out there like yourselves who are writting and
>using systems? what percent profitablity should i be looking for before
>take the plunge? i imagine that with a better money managment system my
>profitability could be much better.
>
>comments appreciated.
>regards, traderzee
>
>
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