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positiontrader

02/24/06 2:21 PM

#21774 RE: ajtj99 #21772

AJ,
I will need to review the final report from Jared.If the downdraw was related to 1987 loss and never that low since that would be important.
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Keith K

02/24/06 2:37 PM

#21779 RE: ajtj99 #21772

No. Obviously there has to be some sort of stop loss in place. No system can avoid a 1987 or 9/11 type event, but every system should have an exit plan for WHEN those events occur.

But, then again, this is an aggressive system, so if you are not putting too large portion of your assets into it, then you could just let it fly.

It always gets back to what your own personal goal is.
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emgall

02/24/06 4:01 PM

#21788 RE: ajtj99 #21772

One of my backtests was setting a 5% stop loss and taking profit at 15% the next day irregardless....this was back in the initial ema(nasi-7) testing, and that did improve the resluts. Also, the system gave a big drawdown in 2003. I would have bailed long before it got so bad.

emgall