Without knowing any more about your method (and I'm not asking), maybe
there's nothing wrong and your system's performance is simply an
accurate reflection of market action during those times?

>From Jan.-Jan. in all those years there was a substantial movement
(either up or down) in the overall stock market.  Since January of
this year, though, the markets have scarcely gone anywhere by comparison.

So, two things:  First, the obvious one, you can't really know that
your system has "broken down" until you get the final results on
January 1, 2007.:)

Second, if you believe that your system is based on actual market
behaviors (not just randomly optimized) maybe it's working properly
and this is just one of those years when nothing much happens.  Which
is why I believe that 8-10 years is pretty much the minimum necessary
for an honest track record/backtest, rant, rant.:)  This may be a
totally valid "performance lull" period for a system that is stellar
most of the time.


Luck,

Sebastian

--- In [email protected], "intermilan04" <[EMAIL PROTECTED]> wrote:
>
> Hi all,
> 
> I'm having a puzzling situation where my backtest results are
> fantastic yet my forwardtest result is nowhere near it.
> 
> My system is optimized between 2001/1/1 and 2006/1/1.  Results YTD is
> "forwardtest" since it is beyond the scope of optimized data range.
> 
> Here are some numbers of backtests:
> Year-by-year-results (CAR)
> 2001/1/1-2002/1/1: 393.70%
> 2002/1/1-2003/1/1: 232.64%
> 2003/1/1-2004/1/1: 721.79%
> 2004/1/1-2005/1/1: 400.82%
> 2005/1/1-2006/1/1: 490.72%
> 
> and at last--forwardtest
> 2006/1/1-2006/8/29: 74.64%
> 
> I am at a loss to explain this.  It's very sad that I work hard to
> come up with a system that has worked, only to see it not working
> nearly as good as it should be.
> 
> Any analysis/suggestions to fix the problem above is greatly
appreciated.
> 
> Sincerely,
> 
> intermilan04
>







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