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

To: Dave O. who wrote (9652)	3/2/1999 11:12:00 AM
From: Richard Estes	Read Replies (1) \| Respond to of 12039

System testing's major role is to compare systems using a set definition of parameters. I put no stops, buy at open with one day delay, start with 10,000, commissions =$25, never test both long or short in same test. None of these follow my pattern of trading. But I am looking for the best performing system over many stocks and market conditions. The one I can trust. Everyone needs to look at the buy/sell points on the chart, would you take those trades? Too many waste time trying to fit our limited system tests to reality. We lose the big picture. Something to look at: Gann felt that a major trend change occurred when the last 3 bars had higher highs and lows (up) or lower highs and lows (down). inside days where the highs and lows are contained in the previous bar's range were ignored.

To: Dave O. who wrote (9652)	3/2/1999 12:22:00 PM
From: Tom Halkar	Respond to of 12039

Dave Thanks, I will check it out Have a great day! Tom The Windy City

To: Dave O. who wrote (9652)	3/2/1999 10:43:00 PM
From: TA2K	Read Replies (4) \| Respond to of 12039

I appreciated your article on system testing. Below is a question I posted over on the MetaStock thread. But it applies so much over here as well that I'd like to get some comments from those wishing to do so.... ==================================== I'm wondering if you (and others) agree with the following proposition: The ultimate objective in system testing is to find a 'generalizable' system that produces all wins and no losses, and that realizes the largest amount of profit with the fewest number of trades. Such would only be an ultimate objective. Actual systems would fall short of that, but with the best systems moving closer. This is my present understanding. Please set me straight where you care to. Thanks, Nicholas