QUOTE(devauxinvestment @ Apr 7 2010, 06:23 AM)
you cannot seriously think that a system that has preformed marginaly well over a small period as 67 days on back tests is worth 50,000$ ?
you should only look at forward tests as a indication of weather a system works and this should be done by placing acctual trades not some semi system with a xl sheet.... and back tests are only to have a vage idea if a system will work in future and should be done over the period of years not 3 months
please post up the methedology that your system uses or a pic to see what its all about ... maby i could give you an idea or it will gve me a idea to trade better...
please pm me if you answer as i will forget to come back to this thread...
First, I am terribly sorry for not answering you because I thought that would be handled automatically through email notifications, never saw your reply until today, visiting the forum by chance. The $50,000 is not for the type of return that the system generates because such return is not particularly exciting, it is rather to compensate efforts for a particular feature that is included in the trading procedure : the " loss recovery mode", this procedure allows the trader to wipe out in a short time any forex loss without taking any single added risk. I believe this is an important aspect of forex trading, it allows the trader once he gains full confidence in that "loss recovery mode" to approach the forex market with more assurance, no fear/emotions, and it allows him to constantly build his capital base because he is sure that he is always progressing. This feature is particularly crucial for those that are managing forex accounts for the account of other investors, because they have "a moral obligation" to constantly produce positive results which is critical for their long term survival. Having said that, I must admit that I have spent quite some time in the last few weeks trying to improve the strategy's return while keeping the other features of the system. I have just completed that and I have backtests covering 2006 2007 2008 2009 and the first four mos of 2010 (Jan-Apr).
R p p.a ppd prof
349.7% 5100 20 $51,002
284.2% 4500 17 $45,001
122.8% 2149 8 $21,492
177.7% 2980 11 $29,800
200.9% 1152 14 $11,516
Average Return 2006-2010 (4 mos) : 227.1%
This is a daily strategy. It can be applied intraday on an hourly or 2 hours basis and it just produces marvelous results, but daily is less hectic less ambitious and more solid. The following is the net equity graph for the hourly results during Jan-April 2010
[url=http://C:\Documents and Settings\xx\Bureau\graphs 3 mos hourly 2010 Classeur2.xls]My Webpage[/url]
I have same type of graph representations for all other years 2006 to 2009.
I hope I have answered your questions. Please do not hesitate to request more details, I am open to suggestions/proposals/ideas etc. "the brain is like a parachute...it works better when it is open"
Thanks All the best
