How Many Years of Positive Results?

Discussion in 'Automated Trading' started by gaz0001, Mar 7, 2024.

  1. Hello hilmy83,

    Well done buddy. I like that.

    For some reason, I can not get my trading ideas/strategies to make money year to year from 2006 to 2018 in back test. They either lost money those years, or make very small profits. I am the same boat as @gaz0001. Tuff decision

    Good to see someone has an algo that make money year to year. VERY GOOD actually.
    I back test from 2006 to 2024.
     
    #11     Mar 7, 2024
    gaz0001 likes this.
  2. Hello danielc1,

    We will never know the amount of people, but I think alot people have positive outcome.
     
    #12     Mar 7, 2024
  3. hilmy83

    hilmy83

    I don't know why, but it ONLY works on the nasdaq apparently. I ran it live in my journal on different markets starting in Jan 2023 (dow,rus, sp, oil, gold, dax), everything failed at some point except nasdaq. So switched to 100% nasdaq after that.


    upload_2024-3-7_12-17-1.png
     
    #13     Mar 7, 2024
  4. hilmy83

    hilmy83

    But to answer your question, I would just run the strategy live and see what happens. In fact, I ran my strategy after just 3 years of backtest 2020-2022. Wasn't much later I got access to more historical data to backtest it +10 years.
     
    #14     Mar 7, 2024
    gaz0001 likes this.
  5. danielc1

    danielc1

    I wish everyone succes, I really do. But it is not my experience that a person with a backtest get the results as a trader. I think many, many people get fooled trough backtest as if that would represent the reality how a system or trading method would behave in een real life environment
     
    #15     Mar 7, 2024
    beginner66, zghorner and MarkBrown like this.
  6. I know what it's like to try to convince OPM to invest with you.... experienced that myself, years back.

    If I were to consider hiring you to manage my money today, I'd want to see audited performance from 2018 forward. Why so long? Because there were "huge dips", followed by big rallies... and I'd want to see how you handled both.

    Making money in an "up" market is one thing. Protecting assets in a down market is another.

    If you're trying to "make it on your own without sponsorship", you've got a tough hill to climb.

    Suggest building an audit-able track record before looking for money to invest with you.

    Wish you good luck.
     
    Last edited: Mar 7, 2024
    #16     Mar 7, 2024
    SimpleMeLike likes this.
  7. Zwaen

    Zwaen

    I did. At least until today.

    @GAZ: you.will.never.know. A strategy could have worked 100 years (figuratively) and stop working today. It can work only since 1 year, but will be profitable the next decade. There comes a point you have to jump into pool and position sizing/ money management is your safety net. Adjust for max expected drawdown X factor x(eg 1.5)

    Embrace uncertainty, with your parachute
     
    Last edited: Mar 7, 2024
    #17     Mar 7, 2024
    SimpleMeLike likes this.
  8. Agree!!!
     
    #18     Mar 7, 2024
    Zwaen likes this.
  9. Zwaen

    Zwaen

    What would be more important to me, in that hypothetical case, would be to know all the parameters and logic behind the method. But this phenomenon is well know in ML/AI, would you trade the ‘black box’?
     
    #19     Mar 7, 2024
  10. Handle123

    Handle123

    I use to backtest over 10 years of tick data then forward test for 6 months. Then trade one lot, adding contracts as account grew.

    Now I don't backtest much and go straight into month of forward testing.

    Basically two types of trading, wait for price to come to support/resistance or breakouts.
    Targets/Risk are many points and small risk produce usually smaller winning percentages. The other is smaller targets and larger risk providing winning percentages are high.
    There is a blend if seldom of the mean losing trades occur, next trade target whatever you lost.

    But here is the difference between now and when I was a tadpole, been trading 46 years gone by. I know what works for me.
     
    #20     Mar 7, 2024
    beginner66 likes this.