|
PureBytes Links
Trading Reference Links
|
> Remember the thread earlier this month where people thought you should
throw out the extraordinarily large gains when assessing a system's
performance? I don't think you should. Those are the elephants you're
hunting. If they never occur, you've got a system/tradable with no real
upside potential.
>
> John
John, I can no speak for others but I wish to make my point on this
subject.
1.) If you are a position trader who makes 5-15 trades a year following a
"TREND" method. One probably should not throw out the big winning trades I
would agree. After all that is what the system is designed to do. However
I dislike these types of systems for many more reasons than I have time to
discuss.
2.) If you have a system that trades perhaps 50 to 125 trades a year and
these average trades are dependable in size. Then what I have done is to
discount the few extraordinary winning trades by about 25%. There are few
of them and so I don't want to become dependent on thinking they will always
be there like a "TREND" follower. In fact I had much rather see if the
model will hold up without any huge anomaly winning trades, then when I do
get them we order cheesecake!
Mark Brown
|