Understanding the Limitations of Backtesting in Trading Systems

Discussion in 'Strategy Building' started by MarkBrown, May 15, 2025.

  1. Hello LionsWarthogsMillions,

    You are definitely correct about that
     
    #21     May 16, 2025
  2. Hello MarkBrown,

    Why do I need to building a trading system and waste time back testing that will not make me rich (+$500,000) in the future (0-12 months) when I only need to solve one problem day to day in my manual/guessing day trading to make me rich (+$500,000) in the future (0-12 months)?

    Why not conquer the fear to getting rich quickly in day trading, trading systems is too much uncertainty?

    This is why I say trading is VERY easy, cause there is on ONE problem to do a Tap Root Investigation to obtain a Permanent Corrective Action, then I own the world.

    I think us traders are working TOO hard, and need to think more like an Engineer, then a trader.

    Day Trading Systems is NOT the answer to riches in day trading the futures market. Systems is a BIG distractions. It is good for elementary trading thinking, but me knowing that building trading systems is a big waste of time is the BEST and GREATEST edge I can ever ask for in trading.
     
    Last edited: May 16, 2025
    #22     May 16, 2025
  3. taowave

    taowave

    On what capital base

     
    #23     May 17, 2025
  4. A very minimal, average, common, capital base, trading account. The general idea is to grow and compound. I didn't say it's easy and instant for everyone to accomplish, but certainly still possible and doable for the right, ideal, wise, candidate trader
     
    #24     May 17, 2025
    SimpleMeLike likes this.
  5. Good Morning LionsWarthogsMillions,

    You are correct!
     
    #25     May 17, 2025
  6. taowave

    taowave

    A mil in a month on a relatively small capital base???


     
    #26     May 17, 2025
    HawaiianIceberg likes this.
  7. Sure. It's all very possible. The numbers are there. The windows of opportunity are there. Now it's just up to the trader...to seize it,
     
    #27     May 17, 2025
  8. taowave

    taowave

    What leverage are you talking?

    What’s a small account in your humble opinion??


     
    #28     May 17, 2025
  9. demoncore

    demoncore


    It's @MacBookProHo's new nick. A worthless troll.
     
    #29     May 17, 2025
  10. I don't even know what leverage is. I just trade the dang options. And don't get too technical.
    A small account....is your typical retail starter trading account size.

    Near expiration options are very volatile and liquid to trade. The range and liquidity exists to grow. The trader just has to seize that movement, if they have great timing, understanding, and wisdom of what to know when to generally expect
     
    #30     May 17, 2025