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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: Tom Trader who wrote (7100)10/23/1998 11:45:00 AM
From: Patrick Slevin  Read Replies (1) of 44573
 
I just ran a system that I know is faulty on the Daily SP8Z.

It comes up with 3 winners, 9 losers. a 25% W/L rate.

The average gain was 53.7 points and loss was 31.8. The total is negative 124.60.

The system is long from 1064. It has a stop currently at 1031.60

So in theory, if we reverse the current trade we would be short from 1064.00. Because the system is designed to have a stop on the downside I cannot determine what the stop should be on the upside. Theoretically, there is none because the signal has to be traded in reverse. So, losses may be considered to be unlimited.

If I remember I will tell you when the signal reverts to short and we can tally our net change, then establish a long signal. These signals generate about every three weeks on average so by the time this contracts expires we should have perhaps two more "trades".

EDIT Obviously, Maximum Profit is limited to 32.40 points. The Entry minus the current Stop.
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