Just how reliable is backtesting?

Discussion in 'Trading' started by nxt7, Apr 14, 2016.

  1. IAN

    That's correct. Couldn't have said it better. Implementation and proper resource utilization is key. Doesn't matter if you're running a Bloomberg subscription, super data feed, and 20 monitors. A well seasoned trader with IB Data, single monitor, and slowest computer on the block will empty some pockets
     
    #101     Apr 19, 2016
  2. kut2k2

    kut2k2

    http://www.elitetrader.com/et/index.php?posts/4271590/
     
    #102     Apr 19, 2016
  3. I think newer traders should backtest manually so they can see the charts and learn the patterns. Yes, this requires work. I learned the hard way, that you have to work for your money in this business.
     
    #103     Apr 19, 2016
    d08 likes this.
  4. d08

    What instruments and timeframes do you trade that allow you to optimize 3-4 times per year? Are you factoring in volatility/ranges?
     
    #104     Apr 20, 2016
  5. d08

    d08

    @profitlocker equities and ETFs. The idea was to only optimize once per 3-4 years but that's not how it went. Volatility adjustments aren't manual, I adjust what type of signals to take and try to optimize the profit factor in the process.
     
    #105     Apr 21, 2016
  6. I did a lot of backtesting and got fed up with it all. I take trades now that have a reason for existing, whether price action or news, not just some theoretical matchup with some mathy stuff... I don't do anything that wasn't known and understood decades ago, it's just tech-enhanced. If I found something newer that works I'd employ it but so far, not much. The biggest struggle I have is taking what I see on a chart and breaking it down into terms that a computer can work with! I have a real appreciation for the idea that the best computers on earth are the ones between our ears after all this effort.
     
    #106     Apr 21, 2016
    profitlocker likes this.