Profitability of a Mechanical System

Discussion in 'Strategy Development' started by Sam Mcgee, Dec 17, 2005.

  1. I've just developed a mechanical method to trade pullbacks. The target is two times the size of the stop. The win ratio is about 50%.

    Does this sound like a reasonable profit for a mechanical system? Has anyone heard of mechanical systems doing a lot better than that?
  2. How many trades do you generate every week? month?

    I am just trying to understand how relialble your numbers are?

    If are getting these results out of 10 trades, then they are meaningless. If you are getting them out of 1000 trades, than your system sounds pretty solid to me.

    Good luck,
  3. I'm getting these results from 100's of trades for many different equities and over different months. The number of trades depends on the period of the intraday bars. Typically I'm using 2 minute bars which gives about 2 or 3 setups a day. Sometimes 1 minute bars work best, sometimes 5 minute, it depends on the average movement of the market at the time.