Would you run this strategy? 10 year DAX backtest results attached.What do you think? | Traders Hideout


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Would you run this strategy? 10 year DAX backtest results attached.What do you think?

  #11 (permalink)

melbourne victoria australia
 
Trading Experience: Advanced
Platform: ninjatrader
Broker/Data: FXCM
Favorite Futures: AUS200
 
Posts: 76 since Apr 2016
Thanks: 40 given, 81 received

Consistently profitable mechanical traders are versed in programming, math, and statistics. First and foremost, they know how to back-test correctly, and how to avoid the multitude of statistical biases and errors that can arise. Even traders who arenít looking for a magic system often make the mistake of thinking that their back-testing has any merit. More often than not, itís mired in numerous statistical errors that leave it not only incorrect, but worse yet dangerous to their trading account. the math and statistics of correct back-testing and system building are extremely complicated. Unless youíre a math and statistics whiz, you donít stand a chance.

System traders that are successful, understands the markets in a deep way. This is of vast importance because market conditions (like volatility and directional conviction) are cyclical and they go through different kinds of patterns over time. So even if you were given a solid algorithmic system by a great mechanical trader, you still wouldnít be able to make money from it over long periods of time because it would need to be fine-tuned to adapt to changing conditions. Moreover, the great mechanical traders will often have several systems and theyíll choose which ones to employ at what times based on their deep understanding of market behavior.

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