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Sounds like good old fashioned linear regression techniques applied to
an equity curve, to me.
Thursday, February 27, 2003, 5:55:02 AM, you wrote:
CJ> Mark Brown writes:
CJ> i think to be successful with any system you have to have a confidence
CJ> level with it. know what it does, so that you can begin to suspect
CJ> when it will make a killing and when it may get whacked. it's call the
CJ> due effect (trade mark ;) it's what i have lived by. i did not invent
CJ> the due effect i was taught it by someone, and it can be quantified. i
CJ> think systems are like employees, you have to understand what they do
CJ> well and what they don't and then take it at that. you will never get
CJ> a perfect employee but that doesn't mean that they can't get the job
CJ> done.
CJ> ----------------
CJ> Mark, can you go into this more? Sounds like you are talking about
CJ> overlaying onto mechanical systems a discretionary trade/do not trade
CJ> decision.
CJ> When you say "it can be quantified," do you mean it can be systematized --
CJ> i.e., you take a system and you add more rules to it?
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