Re: backtesting There are many profitable discretionary traders like myself that just trade volatility. Find whatever is moving, and trade it. There's nothing to backtest. I don't care if the stock is trading at 10c or $1000, or if it's down 50% or up 50%...I'll try to trade it, and more often than not make some $.
Well, you heard the man, just transfer a hundred grand from your savings account to your trading account and start trading ANYTHING that moves. If Intel or Google or Horse Shit futures are moving just buy. Do NOT think, just BUY, BUY, BUY, whatever is moving. And of course do NOT (I repeat, do NOT) backtest anything under any circumstances, risk your hard-earned money on un-tested, un-proven systems right away, that's the only way to beat the market! Remember that only total losers backtest their system first. I am dead serious, if anyone tells that you need to test your system first, don't listen to him, he is a total moron and/or probably just escaped from a psychiatric hospital. Well, there you go, the secret of successful trading right here! PS: What, you are still here? Start trading anything that moves I tell you. NOW!
That's what we used to do back in the days. Trade where the action is, find buyer and seller, bid/offer up/down hundreds of times, add to position,etc. But you are one of the rares ones that have made it thus far. Most people at my firm who traded like that left in 2009-2012. They are just not making money anymore. Those were the halycon days of daytrading and very few have survived that trading style in these times.
A good trader can make money in nearly any volatile instrument. Stocks are just the easiest. Backtest to your hearts content...it won't make you a good trader.
The conditions for this style of trading have been slowly improving since last year. The past couple months have been even better than average.
True, but trading a "system" without even knowing its average profit (loss?) per trade, its maximum drawdown and its return on investment (if any) is beyond stupidity. Would you buy a used car without even test-driving it?