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Profitable Trading System
03-27-2016, 07:48 PM
Post: #1
Big Grin Profitable Trading System
How can you be sure that this system can make the exact same results in future, after you have found a profitable trading system that you already back-tested?

No body can predict the future, the body can easily make losses in next decades or can be no tradable.

There are several tests you should do before receiving a dealing system, these tests swill show the robustness of one's system and when passing these tests, it'll become more likely to show gain in future. Get further on this affiliated wiki - Click here: homepage.

Test 1 : Ensure that you set liquidity concept, that your entry and exit prices are realizable.

Check 2: Examine again your trading methods and your rules (This can be extremely important).

I created dozen of trading systems that showed great benefits but after examination, it showed that i can not follow them in real life.

If there is one stock that made very large gain check, the system may probably become no successful without this stock.

Test 3: Change twice or 3 times the day of begin for the simulation, if it still show great results then it's passed the test 3.

Test 4: Change values of some variables or variables you've in your trading system principles, you must change one price and then back-test, change another and then back-test...

It passed the test 4 In the event the answers are not affected very poorly then.

Test 5: Attempt to limit the program from buying 20% or maybe more of shares when doing the back-test you formerly bought. Then re-run the back-test. System must show quite the same results as before, to pass this test.

Test 6: Equity chart should have a great look, check always some figure values like sharpe ratio, sortino ratio, common deviation, maximum drawdown, average day for increases recovery...

It depends on the chance you're prepared to take but choose only methods which have : higher sharpe ratio, higher sortino ratio, lower standard deviation, lower maximum drawdown...

Exclude methods which have really big max drawdown, standard deviation and normal time for increases restoration.

The must important aspect I believe is typical time for increases restoration.

Their the average quantity of day-that you have to wait until your money value will dates back to the same level prior to the drawdown happen.

Big beliefs will let you wait for long times before recovering results and for sure many traders will abandon their trading system, and that is the worse thing that sometimes happens to a dealer because soon after that, the system will show very good results. Identify more on our favorite related website by going to sexual decoder systems. We discovered jason capital by browsing webpages. If you have an opinion about literature, you will seemingly need to read about per your request. (That is often happen)

Theses tests are very limited and you'll reject probably all your trading methods, nevertheless when trading you will put your money, real money, so i think you should be very selective to produce all opportunity in your part..
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