Trading systems

• 11/25/2017 at 11:54 PM #53968
  Abz

  hello

  when you guys decide to go live with a system after doing all the backtesting and research, for how long shoud the system run and make profittable months before you can tell that this is a proper system? Anyone have any experience with systems doing good for many months and then just reverse into non profit? For how long do you then continue? And how many months was it proffitable?

  how ofen shoud a system be optimized? 

  

  Abz

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  11/26/2017 at 12:30 AM #53971
  Derek

  Hi,

  you could simply money manage your system portfolio. If a system brings home a loss of X percent of your capital: turn it off.

  There is a stop for your trades at a certain value according to your risk appetite. The same is true for every system.

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  Abz

  

  Derek

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  11/26/2017 at 9:18 AM #53982
  mr blue

  Hi Abz

  You mentioned an important fact “systems doing good for many months and then just reverse into non profit” – this happens very often and – me included – many traders/programmers burned a lot of money. 

  Here is what I do:

  first of all I develop and test my strategy on a demo account 

  i have no time pressure so i can monitor the results closly

  the system must work well in sideways, up and down phases

  as soon as the system has a positive ratio of for example 1,50 or above it’s a candidate to golive

  then i start with small cfd lots to see the behaviour in realmarket – remember – in realmarkets you have an order book (buyers and sellers) – it can happen that your order will not be filled due lack of pending orders in the book

  depending on my money management i increase the lot size

   

  i hope this helps a bit

   

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  Abz

  

  mr blue

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