re: hello corrupt me old mate
Greetings .....hard to give away the parameters of the system without saying too much....i basically convert price data into my own set of numbers which then gives me setup signals either but or sell or wait and the probability of this occuring ......
the trick with any good system is not to have too many degrees of freedom if you have say 7 or 8 major indicators its way too many in terms of being able to test properly and truely be honest about accuracy of your system .....my system is based on two major indicators when these two are in sinc i can trade ....you need to keep a system simple even if it's based on complexity behind the scenes...
The trick with any system is to know yourself , know how you like to trade and design a system around that. I personally like to hold a position from between 2-7 days in either stocks or indices via leveraged cfd or futures contracts...I currently have a 74% strike rate ....that the least important part i can have as low as 32% strike rate and still make what most would consider a good living .....it's not so much about being correct as opposed to how much you make when you are correct (on average) and how much you lose when your wrong (on average)....hence the old adage let your profits runs and cut your losses ....or course it finding the balance knowing your numbers and managing your money correctly ....
I think most people fall into the trap of thinking they have a good system if they can pick something with a good strike rate ....thats not a system ...the money management side is much more important there are people with 80% strike rates that lose money and other with 30% that make consistent profits ....a system involves all the elements of trading that should encompass your own personality ....deciding on weather it's 100% mechanical ...timeframe you want trade ....how many opportunities you need to trade ...costs of trading ...average profit...average loss...potential maximum drawdown....amount risked per trade ...and so on.... if you get all these factors right then you have a system and the strike rate although important becomes secondary .....
