RE: equity curving

["c" <camacazi@xxxxxxxxxxx>]

Hi All

i have decided to impliment the sugestion below into my anlysis
.......ummmmmmm but i dont know how to do the "slope of regression line"
thingo.... Anybody got any ideas?

Cheers
Cameron

-----Original Message-----
From: Daniel Posmik [mailto:daniel.posmik@xxxxxx]
Sent: Wednesday, November 05, 2003 1:51 AM
To: c; omega-list@xxxxxxx com
Subject: Re: equity curving


Hi Cameron

Tushar Chande described in his book a method to compare the "smoothness" of
equity curves.
First you have to calculate the slope of  the regression line of the equity
curve.
Then you must calculate the average distance of equity points from that
regression line.
He calls this "Standard Error". Last you devide slope/ Standard Error. The
higher the value
the smoother your equity curve....

Regards
Daniel

----- Original Message -----
From: "c" <camacazi@xxxxxxxxxxx>
To: "omega-list@xxxxxxx com" <omega-list@xxxxxxxxxx>
Sent: Wednesday, November 05, 2003 4:24 AM
Subject: equity curving


> Hi all
>
> Has anyone seen or developed a formula that can represent a constant
equity
> curve?
> i am working through lot of backtesting data from lots of diffent systems
in
> an excel spreadsheet , and i thought it would be easier if i had some sort
> of formula i could create that that would represent which system had the
> straightest equity curve. i like equity graphs that go up in a staight
line
> with tiny zigzags rather than big zigzags(drawdowns).   any sugestions ?
>
> Cheers
> Cameron
>
>
>
> ---
>



---
---