Trading Systems vs. Discretionary Trading

[the blades]

Well, if it has stood the test of over a decade under different market conditions, I guess it must be highly robust. Good luck to you brother.


Thats a fair enough return for a successful HEDGE FUND MANAGER. However, as an investor, I would like to know the drawdown associated with that result.


So if you do it on a basis of ranking, do you think your rules are sustainable across different asset classes. For example, Currencies, Metals, Commodities to name a few.

Hello again,

The maximum drawdown is in the region of 10% (since I've been operating it). The longer term equity curve is attached, but this is based on 3 monthly periods so intra period drawdowns aren't visible.

The chart shows the raw system (mechanical winners), the returns when the mechanical system is "eyeball filtered" (discretionary winners, the way I opertate it), the performance versus the All Share ("Diff All Share cumulative") and the "All share", (right hand scale). Note - the returns aren't compounded.

I don't know how the system would work against other asset classes but my gut feeling is that it wouldn't.

Cheers,
UTB

 

[lancenicolase]

The Advantage Systems have already been appreciated by investors worldwide. They perform excellently on many different stock markets. They bring high profits both on developed markets, such as the American or Australian, and the emerging markets such as the Asian or Central European. Even though one perfect trading system that always performs well on all stock markets does not exist, yet, owing to lack of the optimalisation and a well-thought out construction, the Advantage Systems allow to achieve success on stock markets worldwide!

 

[satman007]

well i think, i agree with frugi
a mixture is what i opted for.

It can be done
Cheers

 

[mkz160]

I voted for mixture.

On the other side, if you trade with medium-long time horizon (starting from holding position for few weeks) then systems work good :clap:
However, you need to monitor news/events daily just in case of black swan

 

[pottsmt]

I know this thread is pretty much dead but there is a good blog that goes through the process of developing a trading strategy. the author posts general profitable strategy with backtest but then asks for reader comments to help enhance the strategy and then posts the results of the user ideas. its actually pretty educational because it hits on a lot of the pitfalls of mechical/rule based systems and backtests.

the address is if anyone wants to check it out.

 

[maxima]

and that 'author' must be you.. no ?

have brillian business idea. create internet domain .so (snake oil)... and sell it to you and your ilk...

www.backtesters.so ? whould you pay 50 bucks for it?

 

[nfzrmn]

As we know how much important money management, trading psychology and position sizing is in Technical Analysis section so no doubt we should have a Trading System which suits our personality and comfortableness and gives us a emotion free trading where emotion is the killer.....

 

[221marty]

I am looking for anyone that has tried or knows about a company called cutomized trading .com? I would like toknow if they are a good software company for stock trading.