Hi, So, I am seeking advice on ET Or maybe some tips on the subject. Well, the issue I am having is that my automated strategies are built using daily bars. So when I am backtesting with NT and daily bars that gives me quite few trades over several years. In a sense few trades should in theory make the backtesting less reliable, but since its using daily bars... should give it more reliability. Anyone had a similar issue and found a good solution to it?
Example of a system: http://img508.imageshack.us/img508/5955/ss20110420100749.png Profit factor 10, DD 3750 Makes 48k in 4 years. But problem is there are only 18 trades in 4 years. Been thinking about "validating" the system using other instruments to see that it is really a generally occurring price pattern.
Get more data and test your system out of sample. This is a long only system and usually this type of systems are biased.
If you haven't already, take a look at this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=212824&perpage=6&highlight=statistical significance&pagenumber=1 Hope it helps!
Yes its true its long only. But the market moves differently up and down so I had to have different strategies for each direction.
A major collection of misunderstandings by various usuals who are self-proclaimed experts on a subject they hardly understand, even remotely.