Re: Commercial trading systems opinions

[hcarvas <hcarvas@xxxxxxx>]

Hi Richardo,

The drawdown may be unacceptable to you if you trade  a single market.   
However, if you use one system, trade multiple markets and use position 
sizing (money management), you may find that the overall portfolio 
drawdown is acceptable to you.  This would smooth your overall equity 
curve somewhat.  Still risk and reward often go hand in hand.  If you 
want a higher return on investment, generally it means that you need to 
tolerate higher drawdown.

hc

Ricardo May wrote:

Hi Mark,

Thanks for the information. I did get a copy of Active Trader and have 
been exploring the system. Very interesting - high profit but alas 
high drawdown as well. Trying do see if the drawdown can be reduced 
without sacrificing generality.

By the way you have also made available in the public domain a counter 
trend approach using Kaufman's Efficiency Ratio based approach. How 
does this approach compare performance wise and generality with the 
above approach published in Active Trader?

Thanks,

Ricardo May

PS. Thanks also to James Mills, Sethw2@xxxxxxx, Jeff Gilfillan and VK 
for their views about commercial trading systems.




From: Mark Brown <markbrown@xxxxxxxxxxxxx>
Reply-To: Mark Brown <markbrown@xxxxxxxxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Subject: Re: Commercial trading systems opinions
Date: Fri, 23 Apr 2004 03:38:15 -0500

Hello Ricardo,

Buy the May issue of active trader magazine there is a system in there
which has out performed all those systems you have listed and it's
free. not one of those systems has out performed on the same Active
Trader standard portfolio.


RM> Any opinions of the systems based on personal experience? Is there
RM> any value here, any original ideas? Anything better?

RM> Thanks,

RM> Ric



--
Thank You,
Mark Brown
www.markbrown.com