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Terry -- thanks for reply, and comments follow:
At 09:08 AM 5/19/98 EDT, TQuinn211 wrote:
>Colin,
>The purpose of the tehnique was to show a systematic way to go back to your
>closed positions and evaluate if the output of your system (closed trasdes)
>needs to be refined. The time frame used would be a function of the time
frame
>your system is designed to trade. So a day trading system that does not allow
>positions held overnight, may use a 4 hour or one day lookback.
***this part of your study --- the choice of date from which to measure the
efficiency of exit -- is what threw me off.
I thought: if his date choice was different, so would be the efficiency
results. Any comments?
>So the example in my original post has severe limitations and used alone
would
>be a poor measure of the effectiveness of the system. It is intended just to
>measure it''s efficiency, and act as a reminder that the good traders
spend as
>much time looking at the exit of trades as the entrance rules.
***In my scheme of things, exit ( "cost control" ) is more important than
entry. And then, if the system produces 50 - 60% winners and the average
winner is at least twice the average loser, the system makes money.
>All the best that life can offer- the love and laughter of friends and
family.
***to which I would add: "Carpe Diem ... "
>Terry Quinn
***with best regards,
Colin J.
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