System One and Two Update
Posted on November 27th, 2009
Written by Richard
Posted in: N/A (old archives)
Some of you are asking about Systems One and Two built around my price proxy (I dropped sys3 a long time ago). Well, DavidB, a team member, has been doing excellent research, including some refinements of the rules! Here’s a tiny excerpt or two from his analysis:
On System 1:
“I did an informal backtest of the last 15 days or so of trading. (BTW, it was day session only.) System 1 is good for a 70% win rate. Yeah! The wins can be phenomenal, and the losses are only as big as you make them. [...]”
On System 2:
“For System 2, about 27 trades in 13 days, with only one loser. This was using absolutely strict rules of the EMA trending the right way, and of price pulled back through the EMA of at least 3/4 of a bar, or 3 ticks. [...]”
Two Take-Away Messages
First, the price proxy entry ideas I put together are viable, and people are doing great work on refining them. This was just an excerpt from a single example. Thanks, David!
Second, and most importantly, I think David would agree that, by his efforts, he has learned far more than he would if he had just asked me about the statistics and I rattled off some numbers to him. David is learning by doing! That is a powerful thing, and something I’m trying to get the majority of the team to do. At any skill level, you can lurk and benefit a little, or you can work with your ideas, share what you’ve learned, and get to the next level faster than you thought possible.
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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.