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Strategies & Market Trends : AIQ TradingExpert for Windows -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (639)	7/9/1998 11:51:00 AM
From: Bruce A. Bowman	Read Replies (1) \| Respond to of 1176

I understand about the results, Les. As you point out, annualized return doesn't mean much unless you have a large population. Since your screen is very open, most stocks are going to fall thru. Lowering the avg. volume would give you more candidates, but I don't know if that's what you would want to trade. Certainly you can optimize the trade differently to increase the tradeable population, but maybe there's a vote for leaving the trade as is. Just give the trade as originally tested a label and start scanning for it and trading it everyday. Your premise is that you aren't going to get many trades which is always true when risk:reward is strongly in your favor. Just take what the trade gives you, knowing that you aren't ever going to see many trades. With a reliable trading system in place and working for you every day, now you can pursue a modified version of the trade... a variation that has a larger population of tradeable candidates. Ather thought- you did a backtest of Prosearch that gives you minimal candidates. I suspect that the turnover in candidates is higher on a day-to-day basis and might even change daily. The inference is that the real range of tradeable candidates could be significantly larger than the backtest would suggest given the limitations of the Prosearch database. Along that same line, your trades probably didn't all happen within a few days of the Prosearch backtest date. If you're collecting candidates from Prosearch on a daily (weekly?) basis, you need to decide how long to retain prior candidates. Or maybe you don't retain any in favor of always trading from a fresh list. I'm left wondering if EDS was finding trades on some of these stocks after they would have appeared in a present-day Prosearch output. Just something to think about as you go thru the trade results for the umpteenth time. Bruce