System tests are not reality. And never will be. They do allow you to compare systems and their characteristics. We give each test an arbitrary start date. The buy and hold is forced to buy that day, our indicators may not give a buy for months depending on lengths and state of price. If someone put a 200 day MA in there, you wouldn't get first point until 200 days later.
We should always review time in trades, when our money was active. We want the biggest moves in the shortest time frame. When we are out, choosing not to short, it can be at work elsewhere in another stock moving out.
So don't worry about buy and hold figures, pay attention to money over time, length of trades, drawdowns, Avg profit/loss for trade, etc.
Stock selection is very important. Prior scans can reduce the universe of stocks to those that your logic says would be candidates for moves. See as Nick has been told many times, it has to be your system, One that you trust never to hurt you, yet reward you. I really believe that most of the good indicators/systems have been discussed in past post here and it other TA- topics. Very few would be excluded right out, it takes study to find the one that fits you.
What is rich? I have never heard of anyone becoming rich with his own money. Most who become known like a Lynch do it with other people's money. Nearly all the "names" write books to make more money. The big money comes from other people's money. There is nothing wrong about that but an enlightening fact. |
