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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?


To: Dick Brown who wrote (7499)1/4/1998 12:49:00 PM
From: Richard Estes  Read Replies (1) | Respond to of 12039
 
of course darts do as well if you have losers in the mix, remember what you have said often, stock selection is important. But a system that does well on a stock that moves 50% in 3 years won't do much on one that does 50% in 6 weeks. Since your database is based on a min of 5 years, you will most likely get an idea of how the system acted when it was<80. It seems most trade the left side of the mountain, so pick stocks that are on that side.

I agree you can backtest the losers to make sure your system won't hurt you but a 8-12% stop should go a long way towards that.

All systems are good if you find the right stocks for it. But don't throw a trending system against a ranging stock or vice versa.