how to select the most profitable strategy

Discussion in 'Strategy Building' started by robinxing, Dec 15, 2006.

  1. can ts do the job

    I wanna cut off loss and let the profit run

    look at the pic below

    if the strategy equity draws down I will stop trading

    if it makes money I will begin trading

    how to select the most profitable strategy

    thank you
  2. Just off the cuff, without knowing anything else about the particular trading strategy or what it entails, I'd say:

    Get another automated system

    This has pretty bad drawdown, and built-in negative expectation.

  3. it seems u did not understand what i mean

    every system has drawdown

    if it drawdown then stop trading with it return to a profitable one

    that is what i mean
  4. Yes, but that system went negative by more than $10,000 before it even thought about showing a profit. IMHO that type of drawdown is too much for any trading system or trader to sustain, financially for most, but definitely psychologically for all.

    It's too punishing.

    There are plenty of automated trading systems given away for free at the tradestation blog, I'm sure you can find one.

    Here's one, that, if traded correctly can do very well over time.

    Turtle Trading System

    It includes extensive information on money management, which is the most ignored part of trading, and it's also the most important.

    Best Regards,

  5. that system simply does not work. have u factored in slippage and commish?
    5000+ trades generates huge commish, that strat will make no1 except your broker happy
  6. You might consider if profit is the only way to judge a system.

    Sometimes I choose a system that shows less profit but has lesser and shorter losing streaks.

    I read that software is available to study the performance of trading systems.

    You might wish to include slippage in any back testing.

    You might want to examine what happens when you trade a portfolio of securities rather than one security.

    No one can predict the future. All testing does is describe the past.
  7. For a newbie, trading the system in a one lot is the best way.

    There's more to systematic trading than quantitative analysis/reserach/development and all the computer stuff.

  8. that's amazing. i just read over the turtle system and it sounds nearly identical to that of another poster on et that you and i have both read. only difference is the et poster used 10 day breakouts instead of 20 day, i believe.