Hi Sebastian,

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

Very true.  I do not think my system has "broken down," it's just that
it is underperforming at a dreadful level compared to how it had been.

As for data range, I also stated it in reply to dingo but for some
reason this system just rips apart 1999-2000 and 2000-2001 (1900% and
3700% CARs respectively) that I thought it was better to omit the two
years and test after the dot-com bust. (yeah, 2000-2001 is technically
including the bust but the system performs surprisingly well)

I will once again optimize with 10 years of data and see how it goes.

Thank you for your reply,

intermilan04

--- In [email protected], "sebastiandanconia"
<[EMAIL PROTECTED]> wrote:
>
> 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" <intermilan04@> 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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