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Just glancing through Chapter 2, page 14 of Chande's "Beyond Technical
Analysis".
Chande mentions 6 cardinal rules which are important when designing trading
sysems.
1. The system must be likely to be profitable.
2. The system must use a small number (<=10) of rules.
3. The system must have robust parameter values, which can be used over many
different time periods and markets.
4. The system must allow for multiple contracts if possible.
5. The system must use risk control, money management and portfolio design.
6. The system must be fully mechanical.
Regards,
Wong
ps: I know my avd system(s) at least violate # 3 (I use heavy
optimziation) and my trading style violates # 6 (I like discretionary
trading).
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At 06:24 PM 04/27/99 -0400, The Funkhousers wrote:
>Some time ago Omega was offering a free book on system development with
>the not too relavent title of "Trading for a Living" authored, I believe
>by Charlie F. Wright.
>
>While not a "bible," for I'm certain that there are other valid methods,
>it is a reasonably thought out approach, and therefore a good place to
>start --- and in this case it could be free.
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