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An excellent method, I use it to back test EOD with SC.
Using multiple indicators I use the drawing tool to place a green
arrow on the chart for a buy and a red down arrow where I think the
indicators signal a sell. Then I bring back the bars to see how how
well I read the indicators. It takes more time but it pays off.
Bert.
Zeus wrote:
>
> This post may sound (read) silly, but I find this amazing. It is intended
> for all people that trade based on indicators.
>
> The point of this experiment is to create statistics for people that do not
> back test systems. If you know the potential of your system, the risk and
> it's accuracy in solid numbers, you gain much needed confidence. I believe
> that a lot of us do not have a system that we can back test, we rely on
> discretion quite a bit, therefore we miss out on thee important stats.
>
> My suggestion: Hide the price charts, fly blind, use indicators only. Change
> the color of your price chart to be the same as the background. Call trades
> based on your indicators only, writing down times not prices. At the end of
> the day, reveal your prices again and find out how you did. You will be able
> to calculate accuracy, potential and max risk. Do this for a few days and
> refine your system.
>
> I found this to be invaluable. As a matter of fact, I trade this way now, as
> in I do not look at prices. The idea is nothing new, pilots are trained this
> way to my knowledge. You have to trust your instruments and not go against
> them.
>
> Obviously this does not apply to everyone...
>
> All of the anxiety of watching prices tick against you, all of the fears of
> pulling the trigger disappear, you find your max risk and able to figure out
> ultimate stoploss point and many more benefits...
>
> Opinions?
>
> ########################
> Shay Horowitz
> www.teamzeus.com
> www.zeus-holdings.com
> ########################
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