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Hi Howard,

As always, Many Thanks for such a detail reply!!!

Just for my understanding, once my system is ready for trading, the final step will be to backtest it on my out-of-sample data. From this backtesting, I will then know the % of losing trades. (for this example lets assume 40%)

Then, using your formula (0.4)^n, I should keep increasing the value of 'n' until the result is the first one below 0.05 which at that point will give me the number of losing trades at which I should seriously considering switching the system off.

Is this correct?

Kind Regards,

Chorlton

[QUOTE="Chorlton, post: 274485, member: 7927"] Hi Howard, As always, Many Thanks for such a detail reply!!! Just for my understanding, once my system is ready for trading, the final step will be to backtest it on my out-of-sample data. From this backtesting, I will then know the % of losing trades. (for this example lets assume 40%) Then, using your formula (0.4)^n, I should keep increasing the value of 'n' until the result is the first one below 0.05 which at that point will give me the number of losing trades at which I should seriously considering switching the system off. Is this correct? Kind Regards, Chorlton [/QUOTE]

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