Help With Evaulating Intra-Day Trading Systems

Discussion in 'Strategy Development' started by SimpleMeLike, Dec 2, 2017.

  1. userque


    #41     Dec 4, 2017
    SimpleMeLike and HobbyTrading like this.
  2. Morning nonlinear5,

    Thanks for the advice. I will keep on going and learning as I go. I will not be applying money to any strategy yet. i am low on capital anyway.
    #42     Dec 5, 2017
  3. Humpy


    Just going back to draw down for a minute.
    I try for under 10%.
    Over 20% is completely unacceptable.
    #43     Dec 5, 2017
    SimpleMeLike likes this.
  4. truetype


    The markets tend not to care whether you find your loss "acceptable" or not.
    #44     Dec 5, 2017
    Van_der_Voort_4 likes this.
  5. Xela


    True, but that wasn't actually the context of the "acceptability" being discussed, here: the frames of reference mentioned/discussed above were more like "someone assessing his own system with a view to deciding whether to trade it" and "what other individuals would find acceptable". ;)
    #45     Dec 5, 2017
    Humpy and murray t turtle like this.
  6. Thanks Humpy,

    What do you mean 20%?

    20% of what?

    #46     Dec 5, 2017
    murray t turtle likes this.
  7. Thanks HobbyTrading for the explanation. Very interesting and good learning:

    Just to make sure I understand your comments, I have some questions.

    So after I check the curve fit parameters (from testing on 3 year data) on the out of sample (e.g. 7 years) data, and the results are bad, does the mean the curve-fit parameters from 3 year data was over fitted? Just trying to get the terminology correct.

    #47     Dec 5, 2017
    murray t turtle likes this.
  8. %%
    Another thing about drawdowns; fine when you are a young turtle. but once you turn 50or even 49, you may not have as much time to recover?? See??,????? Drawdowns to 50 day moving average are fine, juts make sure its not 50%. 5 minute chart is one of the most hated least profitable, but suit yourself. Wisdom is profitable to direct........
    #48     Dec 5, 2017
    SimpleMeLike and Xela like this.
  9. #49     Dec 5, 2017
  10. That's exactly correct Xela! Thanks
    #50     Dec 5, 2017
    murray t turtle and Xela like this.