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Re: MktingMan post# 1318

Thursday, 07/30/2009 3:41:56 PM

Thursday, July 30, 2009 3:41:56 PM

Post# of 1986
Thanks and welcome.

I enjoy answering questions like these. At first glance your strategy results look good for the following reason:

1. a decent number of trades for the given testing period - you dont want too many more trades than your denominator mentioned b/c it starts to become unrealistic.

2. you are obviously positive with your Net winnings.

Some things to improve on however is the ratio of average winners over average losers. I generally a a rule of thumb like a 2:1 ratio and yours is not close to that. Having a 2:1 ratio allows you to better account for slippage and commission rates in your modeling.

Read this blog post to better understand the enjoyment of working with The OddsMaker:
http://marketmovers.blogspot.com/2007/01/2-x-2-decision-box-for-determining.html

and

http://marketmovers.blogspot.com/2006/09/how-to-build-trading-strategy-using_08.html

good luck

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