Everytime I look at what happened to my pairs systems, I assure myself the alternative buy and hold investment in the security was an 85% loss unleveraged, and 120+% margined. I wouldn't call that failure, but I don't claim that it is success. Put yourself in a 23 year old Russian Hacker's shoes, then after you've spent your whole life thinking about growth of capital, then we can talk. Your capital comment is completely unfounded, as my covestor accounts have 3 stars, much over $250,000.
That is plainly failure even if you choose to ignore the ROI, since the backtest itself was fatally flawed (as confirmed by the real life results). What do Russian hackers got to do with anything?
Speaking of that, Prof, I can tell you an amusing story. When I was a Freshman in college I was in awe of the kids who turned their exams in 20 minutes after the start. I assumed they were brilliant because it always took me the full period to finish, and even then I was often rushed to give thorough answers that accurately reflected my knowledge. It wasn't until years later I learned that these early finishers were the ones without a clue.
Maybe he means Russian hackers hacked his account resulting in the performance ? The can't lose logical system can't lose unless hacked ?
I can vouch for that. I live in the land of farmers, two states away. They all have guns. Making enemies is very unwise out here. That said, everything Prof says is true. His code is open source, anyone can duplicate his work. His parameters have not changed this decade. As far as Surf posting bwolinski's collective 2, that was Jack's system which was designed for ES and small and mid cap stocks. Without incorporating sector rotation into the equation, backtesting will fail because large caps behave differently than small and mid caps do. Surf, however is aware of this and it truly tragic how a star player on this site on 2001-02 has been reduced to cheap guerrilla tactics. What happened Surf
What does "sector rotation" have to do with a chart-based trading system? I must have missed something.
That is something that my son had a hard time with. He wanted to be the first done. I tried to impress on him that being the "steady Eddie" would pay off in the long run. It is finally sinking in.
You missed quite a lot actually. Jack's stocks have to be vetted. It is important to the success of the system, so the system is chart based AFTER a universe of suitable candidates is selected.
I leveraged up my results for those of us that can afford to blow $50,000 accounts. Goes to $1.2 billion through 15+% exposures to certain commodities. Close-Close drawdown at 30%, nice profit factor. Going to add some new symbols, and do some out of sample tracking. So far this month pretty good, up 1%.