Simple System for Beginners

Looks pretty cool, but I don't know if I could sit thru an 85% drawdown...

 

Date Entry Exit P/L(less commission) Trade

1 556.50 556.50 5.00- Long
2 558.50 564.20 565.00 Long
3 559.70 559.20 45.00 Short
7 566.80 566.90 5.00 Long
8 563.30 562.00 125.00 Short
9 564.20 566.00 175.00 Long
10 567.70 569.80 205.00 Long
13 573.10 572.50 65.00- Long
14 570.20 571.40 125.00- Short
15 568.10 567.80 35.00- Short
16 574.20 573.70 55.00- Long
17 572.70 572.30 35.00 Short
20 572.30 571.00 135.00- Long
21 575.20 577.00 175.00 Long
22 567.30 565.20 205.00 Short
24 568.90 566.30 265.00- Long
27 561.10 558.60 245.00 Short
28 562.20 565.80 355.00 Long
29 569.70 571.00 130.00 Long
30 572.70 572.10 65.00- Long

NET $1,570.00

 

Hi,

I believe the most of you are from the US - I'm suprised that the majority is not holding to one of the best rules I learned from US-Traders: KISS

I enjoyed and apreciated very much the comments of Samson77 und Everset.

Best to all,

Ralf

 

85% drawdown ladies and gentlemen.

 

Where does 85% drawdown come from?

 

sharpe of 2.7 spells: good one here.

 

if it is a portfolio i would have the feeling that sharpe ratio is too low, given it trades pretty frequent. 1.8 would be below my personal requirement for intraday futures portfolios. i would be afraid of curve fitting. does it trade well in real money?

peace

 

progers, I agree certain stats make this system look like a winner. However I would try to de-leverage whatever your position sizing logic is so that your drawdowns are more liveable. Unless you are on a mission I don't think anyone would want to endure 85% drawdowns for their primary trading. Can you post an equity curve for us?

 

Clarification:


The system posted by progers is not the simple system.
The statistics posted by him relate to his system and not the simple rules as posted on the first page. The 85% drawdown Ramirez quotes is from the progers system. The monthly results posted in the companion thread are from following the rules for the simple system not the progers post.

 

% drawdown is really very changeable depending on your entry point. i could use my system and tripple my investment and my drawdown would only be 25%. what you want to do is compare the drawdown to the % return. thats what is VERY important. if i have a 85% drawdown once in 5 years but my average return is 350-400% and my average drawdown is so much less, i will take that in a minute. But I would prepare myself for the 85% drawdown, because that could happen. but thats trading, clear and simple