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Strategies & Market Trends : Ultra OTC Fund - UOPIX -- Ignore unavailable to you. Want to Upgrade?


To: budweeder who wrote (1195)1/22/2001 1:25:05 PM
From: Todd Reichardt  Read Replies (1) | Respond to of 2063
 
Hi Bud,

I plan on using the sector rotation system as one part of a trading system, so I'm not only concerned with how it performed historically, but also how it performed when combined with other systems. I absolutely agree that lots of systems backtest nicely but are big losers when trading real money. Its just so darn easy to over optimize or to make errors in system testing that skew results to be winners when they really aren't. The advantage of using a vehicle like ProFunds is that it takes out a couple issues that can normally jump up and bite you. Those being transaction costs and slippage. To combat the backtesting problems I'm paper trading the systems to see if they perform as the backtesting implies. So far, so good.

Todd