His simulation shows even less than 500 trades per year.marriot wrote:Well, Ray is trading stocks with some kind of fundamental filter.
This sound very different from what we usually discuss here.
Then he said: "How can you work 3000 trades every year?
I try to keep down numbers of trades at a max of 500 per year."
So, he his using Stop and Limist orders.
The simulation he has show us is not different from the one i have put on here.
This go back some years, but this does'nt not mean that i have trade it from the starting point.
Overall i have to say that his simulation is stimulant.
I have to wonder if he's even using any constraints or filters for liquidity. Researching his older posts shows he states this is a stock market system, but the stock market has the same problems for liquidity that we futures traders have. Though they have their own unique problems of a higher preponderance of HFTs. His older posts also seem to imply he's not using any sort of size constraints
Unrealistic sized positions in backtesting can lead one to unrealistic expectations of gains.rajivm wrote:But I feel the problem will arise when postions sizes to be taken becomes large.
I question whether or not the signals are simply the product of the systems trader's boogeyman, curve fitting. Especially when he states the following
Though, that is simply a statement regarding his backtesting, as he stated in Marchrajivm wrote:And never had a negative year..
[quote="rajivm]I trade it...But I have traded it only for 2-3 months so far. [/quote]
So he can't have had enough real world trading time to make such a statement. Even at this date, such a statement would be invalid.
You are correct in that his simulation is stimulating and it could probably lead to fruitful discussions, though without more information (some of the other charts generated by TB), there's not much to discuss besides an equity chart and some vagaries.