How to research and verify trading ideas

Discussion in 'Strategy Building' started by talontrading, Nov 2, 2009.

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  1. I have found your posts very useful and you've done a great job trying to shepherd this thread along a constructive path. However, the current topic is just wrapping up this failed thread... nowhere left to go with it.

    I thought it would be useful to show people how to develop systems from backtest to execution (rather than simply stopping at models). I originally planned on using some bullshit like buying MA crosses which would have been easy to test. The fact that the system had no edge didn't matter because the point was the test process.

    Instead, I chose to use the first system idea I use with trainees. Whether or not the system works was the point of the thread... I was under no obligation to prove it (though your backtest has done so). The point was the process but it never took off because of BoWo's insistence on me proving myself to be the guru with a great system.

    Not the point, respectfully.

     
    #181     Nov 11, 2009
  2. It would suck to be your trainee. Here's an idea, go test it, guys! This thread went nowhere because there is no proof, nor do I take the current backtest as proof, either. You said 10% was too large a position size, so if we're talking 1%, it is absolutely impossible to get the results reported in the backtest. Even at 5% it's not, and we're left at 10%, so how big should the size be?
     
    #182     Nov 11, 2009
  3. Yes, it's designed to do that.
     
    #183     Nov 11, 2009
  4. Pairs trading is a quantitative automated process requiring no intervention. Trades do not come daily.
     
    #184     Nov 11, 2009
  5. Well, at least your trainees aren't total dumbasses.
     
    #185     Nov 11, 2009
  6. You're so full of shit if you think I don't trade. I don't trade till I have edge. My models are my edge, and it has benefited me greatly for years to be able to program algorithms. My current system is 50 pages long in word, and you think I don't trade?

    And, yes, the answer was acceptable.
     
    #186     Nov 11, 2009
  7. Yes, I know what that means, you moron. For my internship I had to study equities market makers, and it is why I know market internals to this day.
     
    #187     Nov 11, 2009
  8. You're naivete is not understandable. You come on here, with a system, tell everyone they need to follow it for a year, and <i>then wonder why we need proof before following it?</i>

    <b>You're a dumbass if you think there is no need for a backtest in that situation.</b>

    Do you seriously believe you don't need a backtest?

    <i>We already know the answer. We don't according to you, but for every other trader out there, would need a backtest and complete tradeslist before considering putting any money in a brand new idea out of nowhere.
     
    #188     Nov 11, 2009
  9. xburbx

    xburbx

    any chance we can drop the fight here and just let talon continue to post if he so chooses? i guess just agree to disagree and move on with the thread
     
    #189     Nov 11, 2009
  10. Which one? 930 or primary market open? It's not a "yes, it's designed to do that question." Which one?

     
    #190     Nov 11, 2009
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