Yuki, Thanks for the response. I will use your suggestions in backtesting. I wanted to respond to oone of your comments: Speaking only for myself, just put your trial system in a list e-mail, rather than forcing everyone to take the time to visit the files area, locate your file, and read it. If it gets to be a monstrously long system, maybe that's another thing, then. There is a book Titled: "It's not what you say, It's what other people hear". Your response to my placing the .doc file in the Files area was my fault. I didn't clearly enough relate what I was trying to do. The document is 20 pages long. I thought that too large for the list to read through. I was trying to teach myself how to develope a system. I put the process into a word document. The system, I developed, wasn't developed to create Profit, it was developed to instruct myself on how to develope a system. The system, to me, has no value and wasn't intended to have any value. What I was primarily interested in; was having others review my process and tell me: If I was heading in the right direction? Where could the process be imporved? (as in, "What else don't I know?") Again, thanks for your input. Bill PS No plans to manage a Hedge Fund! --- In [email protected], Yuki Taga <[EMAIL PROTECTED]> wrote: > > Hi Bill, > > Sunday, February 4, 2007, 2:41:25 AM, you wrote: > > BH> After responding to Brianzee123's email, I ran a back test on a > BH> Defined Filter of a Watchlist of the 1500 stocks that are in the > BH> S&P 3 main Indices; S&P-500, MID-Cap and Small-Cap. > BH> > BH> The back test produced a heafty $18K+ return, so without > BH> changing any variables, I ran the same back test on "All" Symbols > BH> (I have TeleChart's database) and came up with only a $1300 > BH> return. The primary profit producer in the S&P list was DAKT, but > BH> it didn't show up in the run from "All" Symbols. > BH> > BH> I don't understand why that hapopened. Can anyone explain it to me? > > Do you have enough initial equity to backtest "All" Symbols? (I > didn't notice what backtest mode you were using.) If you don't, AB > will, just as you would be forced to do in real life, buy until it > runs out of buying power. Then it will stop buying. > > Moreover, if you don't specify a position size, it will use *ALL* > your initial equity on the first buy. So you need to specify > position size, position score (which symbols would have priority), > probably maximum number of open positions, and other elements. > > If you do not set your backtests up correctly, the results will be > horrendously misleading. They might indicate a gold mine that simply > isn't there, or a complete failure that isn't quite that bad. > > Last, total return in currency value doesn't mean anything, really. > "Hefty" is very subjective, and certainly would not describe an > annual return of US$ 18K on a million dollars of initial equity. (It > would probably be the end of your hedge fund management career.) ^_^ > > When you mention return, talk in percentages; then we all can relate > to it -- and it has some meaning. Also mention drawdowns. If you had > to risk 36K of drawdown to get that 18K, well that wouldn't be a very > good deal then, would it? Talk percentages there, too. > > Speaking only for myself, just put your trial system in a list > e-mail, rather than forcing everyone to take the time to visit the > files area, locate your file, and read it. If it gets to be a > monstrously long system, maybe that's another thing, then. > > Yuki >
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