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RE: Limited life span of mechanical systems?



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At 2:45 PM -0400 7/15/02, M. Simms wrote:

>Bob - re: "adapting the parameters dynamically over time"
>It's important to know whether or not you are employing Average profit per
>Trade or simply the equity curve or some other non-equity related measure.
>As you have heard on this list, many feel that trading the equity curve is
>just more curve-fitting.

I do not believe that filtering trades based upon the equity curve
has any validity.

If it did, this implies serial correlation - and so you should be
able to figure out why the system is failing under some market
conditions and fix it.

Bob Fulks