Fwiw, when i do these simple backtests,I run them on the 500 stocks in the S&P 500 over a 10-20 year period. I take all trades passing my simple rules.. If i optimiser anything, it's the money management aspect of the systems .. I do not backtest in hope of creating a mechanical system, I do it to assist in discretionary trading of options
Pyramid martingale can exterminate otherwize "profitable" (closed equity curve) traders in one fell swoop-flash crash. Anyone posting a straight 45 degree equity curve on here (like padu) is most likely riding some hidden drawdowns, that can punch out the bottom of the margin limit, on rare occasions...
Hello Businessman, I had just started the system in January 2023, then losses for 2 years. I had to stop the systems, I was losing too much. It had prior good years. I do not believe trading systems is the answer. TOO MUCH WORK, easier to trade everyday and be done with it and get rich this way. Trading systems is for rich people, not poor people. I do not want to be bother with swing trading systems anymore, waste of time.
I would guess your system was most probably over curve fit to past data I too developed my fare share of overfitted systems in the past. That failed in real trading. Although some worked well for a while before failing. These days I trade a simple system that is not curve fit. The back test has bad long periods of drawdowns inside it. So I know what to expect. Easy to create unrealistic systems that have no bad periods in the back test.
Hello Businessman, Yes, it was probably curve fitted. Best to curve fit only 20% of the data set and see how it does. A lot of systems trading has to do with market conditions. 2020-2022 was very good years to have swing trading systems. But I missed that boat to get rich my system.