Hi all,
Curious about your thoughts on what defines a good trading strategy?
Personally, I think these steps are decent to filter out most..
1. Find a repeatable pattern in the markets.
2. Test this pattern with different management styles.
3. Collect a large sample size of trades over years of quality data.
4. Trade the strategy live to collect forward data, compare this with your back-test.
5. Track your live returns with your back-test and set boundaries such as Max DD etc.
Sadly, most traders cannot share either a live trackrecord or prober back-test. I think this industry needs both..
After validating the testing performance of your strategy, you validate the strategy by analyzing the live trackrecord to make sure it is not a martingale or grid system.. because they ALWAYS explode. (The easiest thing to do is to check someone's floating P/L, not the realized DD)
Curious what you're thinking and what you define as a valid or proven strategy!
Curious about your thoughts on what defines a good trading strategy?
Personally, I think these steps are decent to filter out most..
1. Find a repeatable pattern in the markets.
2. Test this pattern with different management styles.
3. Collect a large sample size of trades over years of quality data.
4. Trade the strategy live to collect forward data, compare this with your back-test.
5. Track your live returns with your back-test and set boundaries such as Max DD etc.
Sadly, most traders cannot share either a live trackrecord or prober back-test. I think this industry needs both..
After validating the testing performance of your strategy, you validate the strategy by analyzing the live trackrecord to make sure it is not a martingale or grid system.. because they ALWAYS explode. (The easiest thing to do is to check someone's floating P/L, not the realized DD)
Curious what you're thinking and what you define as a valid or proven strategy!
The.PAI.Strategy All Time Return:
28.1%