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Dear Guy:
I is all your fault. You invited all comments, so you are going to hear
my opinion. I absolutely ignorant in system design and testing, but
thought a little bit of the position trading.
Stock do not going up only. It is economy of men (and women) develops
and therefor Stock Market Averages go up, but individual stocks have a
"life cycle": growth, maturity, and "death". Just look how many stocks
that started DJIA are still there.
So go ahead, design your system, pick up the stock that went trough the
"life" cycle and watch how your system will handle period when stock
"matures" (long sideways moves) and "die" (long downward movement). And
there is nothing wrong to be only long, as long as we are in the bull
market and you are jung enough to skip bear markets.
Yours, Alex.
Guy Hacha wrote:
> I am making and testing some systems.
>
> Because I am a position trader, with stocks, I thought it is was to only trade the long side.
>
> But here is my problem: which are the criteria or benchmarks to test my systems. Because in general stocks are always rising (the long term), so if I am only trading the long side, means that I am using hindsight. How can I be sure the system is gone really work in the future ?
>
> Thanks in advance for all your comments,
>
> Guy Hacha
> Belgium
> E-mail: Guy.Hacha@xxxxxxxxxxxxxxxx
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