Discretionary, Systematic, Mechanical: which are you?

[tech/a]

Re: Discretionary, Systematic, Mechanical which are you?

GP

There in lies the answer.

 

[aarbee]

Re: Discretionary, Systematic, Mechanical which are you?

GP and tech,

I should have been clearer in my statements. The profit of 200% in backtesting is over a period of 10yrs and not per annum. My question is if this is a reasonable return for systems with mx peak to valley drawdowns not exceeding 8-10% of trading float.

I am new to trading and still finding my feet and would appreciate the inputs of all you experienced traders.

Great forum.

cheers!!

 

[tech/a]

Re: Discretionary, Systematic, Mechanical which are you?

There are many aspects in a systems test that should be considered.
Return and drawdowns are just a few aspects.

Which software are you using--this will give me an idea of its reporting ability.
Risk reward ratio,consecutive losses,% winners and losers,Trade duration,even the equity chart can tell a lot.
Do you have Monte Carlo analysis capability?

 

[GreatPig]

Re: Discretionary, Systematic, Mechanical which are you?

The profit of 200% in backtesting is over a period of 10yrs and not per annum.

200% profit over 10 years is an annual growth rate of about 11.7%.

Cheers,
GP