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To: WBendus who wrote (47868)	7/15/1998 10:06:00 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

I read an excellent article in TASC on a ridiculous system. One that gave entries based on a RNG (Random Number Generator). The upshot of the theory was that if one could define a proper exit point, even a terrible entry system COULD make money. I think it was in the March issue. traders.com

To: WBendus who wrote (47868)	7/16/1998 2:38:00 PM
From: Thomas Winklhofer	Respond to of 58727

> You may want to examine your trading system for maximum and > cumulative draw downs, if you haven't already. You should also > account for slippage and commissions with your system, before > committing real money to it, if you haven't already. Of course, WBendus. As I said there are some other considerations for me as a system trader. When you trade a fast system, mine is rather fast, you will not have very big single losses. In that case Money management should take into account the largest loss multiplied by the # of most consecutive losses. That's the absolute minimum you should have in your account. If you want to play it more safe you have to reserve more money for that system and regard the total amount of winning and losing trades. Would you trade a system with e.g. 3000 winning points and 2300 losing? I wouldn't. 968 winning point and -179 losing sounds better, doesn't it? IMHO, Slippage and commissions has less meaning when you trade futures. Only if you trade very often. Nevertheless I calculate 40 USD + fees. I also compare the results with Buy and hold. Buy/Hold index is about 245. > I am not trying to be presumptuous, or condescending, but rather > just trying to make sure you covered all bases. Your reply about > your systems wins/losses didn't include any discussion of these > things, and I am just looking out for you. Thanks for asking. There might be some people out there not knowing what they do ;-)) Thomas