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oh no, not murrey math again ;)) first thing i'd do is go to his
website and see what this cat's all about, here's the link:
http://www.murreymathtrading.com
what you'll find is a highly discretionary "method" heavily based on
experience (usually the vendor's) that you probably will not be able to
replicate in real time trading. if you're looking for a backtestable
system, you won't find it here i'm afraid.
TJ
--- Alexander Levitin <alevitin@xxxxxxxx> wrote:
> At our next Omega Users Group meeting Mr. T. Henning Murrey is going
> to present his trading software.
> My question is how one evaluate any trading software? (I am not
> suggesting
> to buy it on the first place).
>
> Being comprehensively challenged (so I can not use the modern
> terminology)
> I would ask the software developer the following simple questions:
>
> 1. There is about 114 years of daily data available for the DJIA. Did
> you
> test your software over that period of time (for the EOD) software?
> 2. What was the results? How many trades were generated? How many
> profitable? How many losers? What was the average profitable (losing)
> trade? What was the total result?
> 3. What was the maximum draw down?
> 4. What was the assumptions for the slippage and commissions?
>
> If the answers looks interesting and realistic I would continue:
>
> 5. How trading signals are generated? (What is the algorithm for the
> signal
> generation)?
> 7. Are the parameters for the system "fixed" or they are adjusted by
> the
> market input?
>
> If I am satisfied with the answers I would test the system over the
> 114
> years of historical data to see if I could duplicate the result
> claimed by
> the author and then test the system over the next four year cycle
> before
> committing the money to trade (or real money to trade).
>
> What I am missing?
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