Hi Dave, I've been following along, and have a couple questions that have come up. 1. I've noticed when system testing in MS, your % of winning trades depends Greatly upon the amount of $ you're investing. For instance, If one does not have a great deal of money to trade...say roughly $500-1,000 per trade. Plugging this into the systems test yields say 10% for example, but had I had $3,000, the % would have gone to %25. I've seen many people, incl. myself, post returns of ones systems. The results aren't very comparible they since the initial $ being traded makes such a huge difference in results right?. It would be near impossible to get a %25 return on $500 worth of stock wouldn't it unless you held for 6-12 mos. from what I've seen in my tests?
And 2. I understand your use of many indicators used together to form a final decision about whether to enter or not. But how do you use the System Test when you're using not one set of criteria, but many? For instance, using one template w. all the short term indicators, and the second template w. the longer, trend indicating, indicators? Seems it would be very hard to system test this sort of trading system.
Thanks for your opinions! Chris G |