Comments on: How to Develop a Profitable Trading System http://www.traderslog.com/profitable-trading-system/ Online Trading Community for Stocks Futures and Forex Traders Tue, 27 Dec 2011 07:21:15 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Scott http://www.traderslog.com/profitable-trading-system/comment-page-1/#comment-259 Scott Sun, 31 Jan 2010 22:40:29 +0000 http://qs2506.traderslog.com/2009/09/24/how-to-develop-a-profitable-trading-system/#comment-259 Terrific article. Thought it was very insightful when you said: "Remember: your worst drawdown is always ahead of you." Always true in infinite time. Is that quoted from somewhere? Clearly arbitrarily slapping on entry filters will result in a nonrealistic system. However, do you consider numerical optimization of tactical factors (say, calibrating a fixed stop percent to within 0.01% precision) to also lead to over-fitting? This is something I'm presently strugging with in my system development. Terrific article. Thought it was very insightful when you said: “Remember: your worst drawdown is always ahead of you.” Always true in infinite time. Is that quoted from somewhere?

Clearly arbitrarily slapping on entry filters will result in a nonrealistic system. However, do you consider numerical optimization of tactical factors (say, calibrating a fixed stop percent to within 0.01% precision) to also lead to over-fitting? This is something I’m presently strugging with in my system development.

]]> By: Jaco Viljoen http://www.traderslog.com/profitable-trading-system/comment-page-1/#comment-227 Jaco Viljoen Mon, 11 Jan 2010 19:43:43 +0000 http://qs2506.traderslog.com/2009/09/24/how-to-develop-a-profitable-trading-system/#comment-227 Good, informative article, simple and to the point. Good, informative article, simple and to the point.

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