I think it depends on where you subjectively place the peaks and valleys. Seems to me some are counted and some are ignored, depending on what result you are trying to achieve. I say "subjective" because those would be influenced by the biases of the counter. The only thing my system tries to achieve is the highest results, within the constraints of consistency in all types of markets, i.e. don't skew the system settings trying to achieve "balanced" annual returns when it is the variations in market volatility that are primarily responsible. In other words, some years offer significantly more opportunities for gain than others. 2008 was such a year. A properly constructed backtest regime can reveal that in a heartbeat.
Kind regards, -CAPT J
"What would you attempt to do if you knew you could not fail?"
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