I think he means noise is when you have your signals and it goes against you. This is probably not what Mr. Ruggiero had in mind to teach.
Allow me to point out the following, which is always true: %signal + %noise = 100% Sorry if my emphasis on noise has caused confusion. It's just that for my particular signal, it is easier to directly measure the strength of the noise and then use the formula above to make the conversion. If you can directly measure the strength of your signal, so much the better: you need not concern yourself with noise at all. Hope this helps.
Let us give this dismal thread the quietus it has earned by answering the question "Does ET want to learn how to backtest?" with a resounding spluttering "Ssssspppppfffffttttt!" It was a test. I advise anyone reading who is tempted to help ET to place your savioural effort elsewhere.
Thank you. I'll do that. Here 'tis: http://www.elitetrader.com/vb/showthread.php?s=&postid=3272904#post3272904
Pick a minimum number of points to define a swing, Measure every swing that is greater than that min # of points. Keep stats, length, duration, time, frequency ect, then figure out a signal(s) that MUST occur at each top and bottom to keep you on the right side of the market. The market is just a facility. Anything less than your min # of points to define swings is noise. It could be 5 seconds or 5 mins it's up to you for whatever template your using to define your own levels of noise. Good traders can take 15-35% of the days offer, Excellent traders can take 40-70% of the days offer. There were 728 pts on the dow available Thur defining swings as 100pts+ If you defined swings as 50pts each there was probably more available.