Strategy Central

[kenwong]

Euterpe1: Good feedback for the system developer

Thanks for sharing your observations. It's probably always very helpful for a system developer to read how the system appears to another trader. A system often times is the result of how the developer views the market and what he already knows. But ideas shared by another - which are outside of the developer's mindset - might lead to new and perhaps key system developments that might otherwise remain undiscovered.

In this case, the system might include an advisory approach on how to handle the drawdowns. An example might be with a stop which once executed, could be a re-entry at perhaps a suggested 2nd entry opportunity.

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Posted by: euterpe1
In reply to: kenwong who wrote msg# 16859
Date:9/29/2007 12:32:44 AM
Post #168633 of 16863

Ken,

I see 4 trades with 3 profitable. The trades not showing must be deep in the red as C2 shows a net loss of roughly 5% net in 6 weeks of trading. The 8/17 trade was a huge winner on capitualtion selling. Since then the system is down 10K. All 4 trades had a drawdown with 2 rather substantial or actually 3 for the one not posted. I don't know if most folks could handle that type of volatility. The sharpe ratio is a .557. Hopefully he can refine his platform as time goes by.

I like to check out the systems over there to see how they do in a down market. That's the true test.


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12/2/06 Cash
4/11/07 30% Long
4/22/07 Cash
8/21/07 33% Long
9/18/07 55% Long