optimizing drawdown

Discussion in 'Trading' started by kavelot, Jan 28, 2008.

  1. kavelot

    kavelot

    hello

    I'm new here, just studing/backtesting stocks for some time

    I'm convinced (maybe I'm wrong, but no one will get to change my mind) that it's near impossible to beat the market on the long run using just technical analysis
    my main argument is that I backteste literally hundreds of trading systems and none of them beat the market for more than 10 years and for many stocks (sometimes it happens with one stock or another, but that's expected)
    (another argument is that all famous people that got rich trading did it using fundamentals, not technical analysis)

    that said, I'd like to know if someone can recommend me a trading system that allow me to reduce my drawdown
    (I'd also say that's impossible in the long run, but I'm ok to give up some of my earning... for example, I prefer having a 14% profit in a year with 10% drawdown than having a 25% profit with 20% drawdown)
    in other words, I want a insurance

    thanks