Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (14214)	9/22/2001 4:58:10 PM
From: KymarFye	Read Replies (2) \| Respond to of 18137

"I've achieved 80%, but those systems don't make enough trades to give a great annual return." Actually, the system I was thinking of generated hundreds of trades per tradable per year - not that it matters much, because, as I said, you couldn't really trade it. The concept wasn't bad, however. In more tradable versions, it worked decently well for an intraday system. <<What function do you seek to optimize when developing a system?>> I also used to optimize for net profit first. I then turned to optimizing for profit factor (gross profit/gross loss). Lately, I've been testing first for return on maximum intraday drawdown (ROMID) - partly because I've found that it usually equates with a relatively smooth, rising equity curve, and partly because the highest ROMIDs usually occur in conjunction with higher NPs and PFs. I also want a good read on worst-case scenarios, though I'm aware that there's always a "worse-than-worst" case out there lurking. No trading system can protect you from getting hit by a bus either. In general, I try to get a read on every factor that I can think of examining - avg. net gain, win/loss, number of trades, and much else - but I have to confess that I don't customarily apply chi-square tests to my results. I can imagine how one might do so, but I'm not absolutely clear on how you're using them.