Mark Holstius Elite    Posts: 744 Joined: 10/11/2012 Location: Sleepy Hollow, IL  User Profile | I appreciate your observations Buffalo, Yes, numerous small gains vs a few large losses seems to be the norm with RTMs. High Hit Rates can be deceiving in that case - you can have a 90% HR and still lose money if all the positive trades are small compared to the losers. That’s why I choose to use small trade sizes, numerous trades, and then plot the equity curve. I believe an equity curve showing the results of >95% of all the trades generated by a system gives a good representation of the true performance of the system over time. The equity curve is then a tool to see whether the positive trades outweigh the losses. Your comment about getting out earlier by using stops is a frequent one too, and will probably generate some comments. With that in mind, I’ve started a new thread about Stop Losses here; https://www.omnitrader.com/currentclients/omnivestforum/thread-view.asp?threadid=7846&posts=1 Thanks, Mark BTW - I've seen good results as far as slippage too... | |
