MichaelD
Not fooled by randomness
- Joined
- 7 December 2005
- Posts
- 912
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- 2
Re: Backtest your way to financial security.
Backtesting intraday strategies is certainly possible, but is very time consuming (I have access to tick data if I want to utilize it for backtesting, but so far have chosen not to use it as part of a system design).
EOD trader levels do indeed appear to be used by intraday traders to their advantage - 'tis one of the reasons I don't put my stops in market.
1. You're trading a system which has never been profitable so is unlikely to be profitable now.
2. Your system is no longer trading within previously tested limits - why?
Short term trading - 2 and steadily working towards 3
This presumes that you want or need to engage the market intraday. I don't. That would for me defeat the whole point of what I am trying to achieve lifestyle wise by trading.Bobby said:When one backtests they see past performance that was based on EOD trading plans, now today we have realtime online technology that allows us to see , plan , & trade in an instant.
The key levels used by the EOD traders can be used to advantage by the realtime trader.
Backtesting intraday strategies is certainly possible, but is very time consuming (I have access to tick data if I want to utilize it for backtesting, but so far have chosen not to use it as part of a system design).
EOD trader levels do indeed appear to be used by intraday traders to their advantage - 'tis one of the reasons I don't put my stops in market.
"This time it's different."Bobby said:Guess what i'm trying to say is ~ Times have changed, new conditions now apply.
Yep. In the absence of a crystal ball, it's the next best thing because it can clearly alert you in advance to the following;Bobby said:Backtesting past performance = Just that .
1. You're trading a system which has never been profitable so is unlikely to be profitable now.
2. Your system is no longer trading within previously tested limits - why?
Position trading - 3, just following the plan without fear or favourBobby said:what stage are you at ?
Short term trading - 2 and steadily working towards 3