--- Begin Message ---
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: Define the best Mechanical system
From: Gwenn Aël Gautier <gw.gautier@xxxxxxxxxx>
Date: Sat, 17 Jan 1998 18:54:36 +0100
References: <19980116040351.AAA6032@xxxxxxxxx>
Reply-To: gw.gautier@xxxxxxxxxx
Sender: owner-realtraders@xxxxxxxxxxxxxx
ALTAF JUMMA wrote:
>
> Hi Rtrs,
> The reason I did not define what is the best in terms of mechanical system
> is to have individual trader viewpoint. For my own purpose, I would define
> it as a system which can be traded with $15000 and not more than 40%
> drawdown. But each individual trader has different expectations from his
> trading system. I would prefer individual viewpoints.
> As I can see, there doesn't seem to be many mechanical system which work -
> correct me if I am wrong.
> Happy Trading Ashif
For me the best would be the one where you have the highest certainty to be
ahead next week, next month, next year, ie the one with the smoothest equity
line I suppose... I have yet to see such a thing though, you're never really
sure, and it is never really easy.
Everything has a cost, there is no free lunch. In my experience, either the
system is easy to execute and you have to pay in time spent waiting or in
higher, longer drawdowns, or lower or irregular returns. If it is to be better
then that, with a smoother line, typically it is the average trade that will
start getting really small, and then execution, costs and burnout become an
issue...
No perfect world I am afraid!
Everyone has to find his/her comfort level chosing to balance the
different aspects, getting one and giving in on another.
Gwenn
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