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Re: Trading System Design



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In a message dated 12/9/98 11:36:16 PM Eastern Standard Time, zaz@xxxxxxxxxxx
writes:

<< 1) Do Mechanical Systems work for a small account ie.$12000?
    Some of my systems work great if i were trading big money with low
    commissions.
 
 2) Does anyone here trade pure Mechanical, or do most mix Mechanical
    with other techniques? It seems alot of traders use elliot/fib which
    are excellent techniques but impossible to mechanize, am i wasting
    my time/ missing half of the profit if i try to go pure mechanical?
 
 3) How much history do i need to test properly, 25? 50? 100 years?
 
 4) There was recently some talk of trade to rule ratio, some of my
    systems are rather complex, does this mean they'll have less of a
    chance of working?
 
 5) I've developed a system that works very well with one of the DOW30
    stocks with consistent equity growth over 15 years including the
    recent downturn. The system does not work on the other stocks.
    Is it reasonable to have different systems for different stocks
    or will this system eventually fail? Should a good system work
    across all markets?
 
 6) this is kind of a weird question, if a system could be made 
    consistently profitable by lowering it's commission costs(stocks),
    could a similar result be attained by using the system to trade
    ITM options?
 
 7) Should i test my exits before my entries?
 
 I express my sincere thanks in advance to any
 who wish to comment on this topic,
 Jerry
  >>

good morning

first bulid up you capital
then   buy a proven  mechanical system    and  ADECQETELY   fund it
follow it to the  tee
do not try to outgess it and be ready for its dd
ONLY OPTIMISE THE PROFFIT  objective
and if the signal is still valid re enter in the same direction AFTER taking
the proffit