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<DIV><FONT color=#000000 size=2>Could anyone give me some info on Indigo's
Galaxy III program.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Thanks</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Rob</FONT></DIV></BODY></HTML>
</x-html>From ???@??? Wed Dec 09 20:39:04 1998
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Date: Wed, 09 Dec 1998 22:48:26 -0600
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From: JerryS <zaz@xxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Trading System Design
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note-I am having email problems so if this was already received,
please disregard
I would like to start a discussion about the different aspects of
designing a successful trading system. I recently purchased Tradestation
and have spent countless hours trying to program what i thought until
now were profitable patterns and strategies. Tradestation has really
opened my eyes that what you see is not what it seems. For instance,
most of my ideas make consistent profits in bull and bear markets with
very little peak to valley equity drawdown WITHOUT commissions, but as
soon as commissions are applied, the equity gets eaten to death in the
sideways markets. I am mostly interested in stocks/indices since i
havent
tried futures yet, and up until now (2 years) i have mostly traded
discretionarily using a hodgpodge of geometry/patterns/time cycles/
Fib/momentum etc. and the inconsistency of my results is what has
steered me towards a mechanical system.
I have a few questions for some of the more experienced traders here
and hopefully some of the answers will spark some discussion or a
friendly debate. I would greatly appreciate some input from the more
statistically oriented traders Walt, BobR, Ira, Ben, etc.
1) Do Mechanical Systems work for a small account ie.$12000?
Some of my systems work great if i were trading big money with low
commissions.
2) Does anyone here trade pure Mechanical, or do most mix Mechanical
with other techniques? It seems alot of traders use elliot/fib which
are excellent techniques but impossible to mechanize, am i wasting
my time/ missing half of the profit if i try to go pure mechanical?
3) How much history do i need to test properly, 25? 50? 100 years?
4) There was recently some talk of trade to rule ratio, some of my
systems are rather complex, does this mean they'll have less of a
chance of working?
5) I've developed a system that works very well with one of the DOW30
stocks with consistent equity growth over 15 years including the
recent downturn. The system does not work on the other stocks.
Is it reasonable to have different systems for different stocks
or will this system eventually fail? Should a good system work
across all markets?
6) this is kind of a weird question, if a system could be made
consistently profitable by lowering it's commission costs(stocks),
could a similar result be attained by using the system to trade
ITM options?
7) Should i test my exits before my entries?
I express my sincere thanks in advance to any
who wish to comment on this topic,
Jerry
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