Trading Strategies Using Technical Analysis
- Thread starter SwingKing
- Start date
- Tags trading strategies
I had received a request from someone to post the ideal equity curve for a system. Well, although there is no ideal curve, I would like to post this equity curve of a system I used between 2004 and 2009. Check the image first, then read my comments below.
For me, the success of this system is not between 2003 and 2010. Any system during this period would give the equity curve mentioned above as we were in a Bull market. For me, success is between 1995 and 2002 when the markets were very volatile and were not trending. If one needs to build a robust system, test it during this period and see if you get this curve. If you dont, then probably your system is only doing well in Bull market. This for me is sign of a conditional market based system. Such systems will eventually fail.
Since the system above did well between 1995-2002, it was very obvious that it would do very well between 2003-2007. The result between 1995 - 2002 is almost similar to result between 2003-2007. This is what one must target.
Currently I am not using this system since it is failing to give similar results. This could very well be a phase and it could start giving profits again. I am just watching the results of this system carefully.
Tc
For me, the success of this system is not between 2003 and 2010. Any system during this period would give the equity curve mentioned above as we were in a Bull market. For me, success is between 1995 and 2002 when the markets were very volatile and were not trending. If one needs to build a robust system, test it during this period and see if you get this curve. If you dont, then probably your system is only doing well in Bull market. This for me is sign of a conditional market based system. Such systems will eventually fail.
Since the system above did well between 1995-2002, it was very obvious that it would do very well between 2003-2007. The result between 1995 - 2002 is almost similar to result between 2003-2007. This is what one must target.
Currently I am not using this system since it is failing to give similar results. This could very well be a phase and it could start giving profits again. I am just watching the results of this system carefully.
Tc
Following the previous post, I am now posting equity curve of the system I use currently. This has been tested on Index with testing period ranging from 1995 to 2010 (current). Please bear in mind that this graph and the graph posted earlier are not curve fitted. I hope experienced readers realize that curve fitting cannot yield such equity curves.
The reason I am posting this graph here is because any user building or operating a system should seek an equity curve similar to this. The key difference between this system and the system posted earlier lies in the fact of its usage. Advantages of this system remain the same when compared to the previous system. I have stopped using the previous system as the equity curve had stopped rising. But I am using this system because this system is still working as highlighted by the rising equity curve. Index has not surpassed the previous high levels, but the system gains have continued to make a new high as shown in the equity curve below.
Key taking: At the max a system should not take more than 2 years to make a new equity curve high. If it does not, then its time to review the system.
The reason I am posting this graph here is because any user building or operating a system should seek an equity curve similar to this. The key difference between this system and the system posted earlier lies in the fact of its usage. Advantages of this system remain the same when compared to the previous system. I have stopped using the previous system as the equity curve had stopped rising. But I am using this system because this system is still working as highlighted by the rising equity curve. Index has not surpassed the previous high levels, but the system gains have continued to make a new high as shown in the equity curve below.
Key taking: At the max a system should not take more than 2 years to make a new equity curve high. If it does not, then its time to review the system.
Historically OCT and Sept are bad months for financial market.
http://www.investopedia.com/articles/financial-theory/09/october-effect.asp
Happy Trading!
http://www.investopedia.com/articles/financial-theory/09/october-effect.asp
Happy Trading!
Ranaukji
Please spare little time for me and suggest what should I do for my curent holding,danger sept and oct approaching.
1. Venkat pharma [email protected] -15540
2. Alpha geo 200@254 -17616
3. Kotak mahindra bank 100@835 - 472
4. Relind 50@981 - 510
5. Ispat india [email protected] - 25200
Total loss 59336
Best regards. Partha Roy
Please spare little time for me and suggest what should I do for my curent holding,danger sept and oct approaching.
1. Venkat pharma [email protected] -15540
2. Alpha geo 200@254 -17616
3. Kotak mahindra bank 100@835 - 472
4. Relind 50@981 - 510
5. Ispat india [email protected] - 25200
Total loss 59336
Best regards. Partha Roy
Respected Friend
I am overwhelmed by the responce of Traderji community. Here people enjoy helping,feel sorry for others sorrow. At first,being absolute beginer,shyed away form requesting help. After 2,3 question my apprihension vanished. Here the people enjoy helping,feel sorry for others sorrow. The senior wishes and guides newbee like me to learn and take own trading decisions other than depending on paid or other tip provider. There are so many things to learn and so many wise/generous hearts,I have no doubt of becoming a successfull trader. Time and dedication is required. Then I'll surely take the cue from the seniors and make myself usefull to the community. My best regards.
Partha Roy
I am overwhelmed by the responce of Traderji community. Here people enjoy helping,feel sorry for others sorrow. At first,being absolute beginer,shyed away form requesting help. After 2,3 question my apprihension vanished. Here the people enjoy helping,feel sorry for others sorrow. The senior wishes and guides newbee like me to learn and take own trading decisions other than depending on paid or other tip provider. There are so many things to learn and so many wise/generous hearts,I have no doubt of becoming a successfull trader. Time and dedication is required. Then I'll surely take the cue from the seniors and make myself usefull to the community. My best regards.
Partha Roy
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