Sharpe of 3+ means no losing years, and something like 90% winning months (with no tail risk). Now someone really smart on ET could have an automated strategy that is that good. Can't rule it out, but not seen any evidence of it.
Hello Businessman, No losing years is easy! No losing months, I never seen that before in my back testing. It is possible to have no losing months, but no-one would dare show such a strategy on-line.
If you're going to swing trade stocks in this current market you better lower your PT. And if you're going to do that you might as well just day trade.
Yes. Lots of rollovers for long trends I have an hourly system, has drawdowns and losing months and even losing years, but every three years it is making new equity highs. Have to be patient. I thought at the time I conquered long term then added day trading. Every five years long term sys had major changes till 2019. I was horrible at day trading but I was good at scalping, take 200-300 trades during day session trading off the Dome and 0ne minite Bars. Mind falls apart after awhile. I was born without many emotions, don't understand "fear", so overnight trades no different than 20 second trades. Well, you not going to believe me true, but that's OK cause I am not going to explain how I trade or how I enter, how to keep risk almost nil when starting long term trades or how I seldom have losing days scalping. Have had automation over 2 decades in long term and no losing years but I change parameters in October if long term is in drawdown taking profit much earier so by end of year, system profitable. Took awhile for me to figure out how to include equity curve. After I really learned how to hedge opening positions and when retracements presented themselves, learned to hedge open profits. Think of it, make money going up, not lose too often on retracements and add on whether long or short. Spend time learning to hedge, dream up dozens of ways then test them, hugely expensive to buy decades of option data. I don't have 90% winning months, but on long term trades, I could have up to 18 add-ons on one market. And once those have learned golden gooses, you don't describe it. Why should anyone, they certainly put huge time learning.
Good Morning Handle123, Thank you so much for the explanation. I believe everything you are saying. Long term swing system is more reliable if and only if back test results is somewhat equal to real time out of sample results.
I use to think that way when I lost everyday. Little by little you learn about yourself, generally it is not the markets you trying to beat, it really comes down to you against you. Why do you think the way you do?
Hello EqtTrdr, Day Trading is not hard at all. It just takes the trader to a lot of time to determine what makes money and what does not make money. Once you determine what makes money, day trading is VERY easy.