Trading systems

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  • #53968 quote
    Abz
    Participant
    Veteran

    hello

    when you guys decide to go live with a system after doing all the backtesting and research, for how long shoud the system run and make profittable months before you can tell that this is a proper system? Anyone have any experience with systems doing good for many months and then just reverse into non profit? For how long do you then continue? And how many months was it proffitable?

    how ofen shoud a system be optimized? 

    #53971 quote
    Derek
    Participant
    Veteran
    Hi, you could simply money manage your system portfolio. If a system brings home a loss of X percent of your capital: turn it off. There is a stop for your trades at a certain value according to your risk appetite. The same is true for every system.
    Abz thanked this post
    #53982 quote
    mr blue
    Participant
    Senior

    Hi Abz

    You mentioned an important fact “systems doing good for many months and then just reverse into non profit” – this happens very often and – me included – many traders/programmers burned a lot of money. 

    Here is what I do:

    first of all I develop and test my strategy on a demo account 

    i have no time pressure so i can monitor the results closly

    the system must work well in sideways, up and down phases

    as soon as the system has a positive ratio of for example 1,50 or above it’s a candidate to golive

    then i start with small cfd lots to see the behaviour in realmarket – remember – in realmarkets you have an order book (buyers and sellers) – it can happen that your order will not be filled due lack of pending orders in the book

    depending on my money management i increase the lot size

     

    i hope this helps a bit

     

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Trading systems


General Trading: Market Analysis & Manual Trading

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Abz @abbas_sadiq Participant
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This topic contains 2 replies,
has 3 voices, and was last updated by mr blue
8 years, 2 months ago.

Topic Details
Forum: General Trading: Market Analysis & Manual Trading
Language: English
Started: 11/25/2017
Status: Active
Attachments: No files
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