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[USER=17857]@qldfrog[/USER] has raised a very important subject. How do you know when the strategy is only in drawdown rather than the strategy has stopped working. Back to his comment about "when". When do you make a decision that the strategy has stopped working completely & desist with the system?How Do You Know If a Strategy Has Stopped Working?After the development of a strategy that has passed your testing criteria, you decide to trade it.Think about thisWhat if those signals dipped right after you went live, how many traders would panic & turn it off immediately? This is where experience comes in as experienced traders know that drawdowns are a natural part of trading. They occur with such regularity, sometimes so small that they go unnoticed, & other times large enough that might make you question your strategy.Skate.
[USER=17857]@qldfrog[/USER] has raised a very important subject. How do you know when the strategy is only in drawdown rather than the strategy has stopped working. Back to his comment about "when". When do you make a decision that the strategy has stopped working completely & desist with the system?
How Do You Know If a Strategy Has Stopped Working?
After the development of a strategy that has passed your testing criteria, you decide to trade it.
Think about this
What if those signals dipped right after you went live, how many traders would panic & turn it off immediately? This is where experience comes in as experienced traders know that drawdowns are a natural part of trading. They occur with such regularity, sometimes so small that they go unnoticed, & other times large enough that might make you question your strategy.
Skate.
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