I don't think your ideas or practices nullify anything ... At worst they supplement it ...
While I'm not a huge fan of MCS, the methodology does provide additional information over and above what a straight backtest provides ... It's my contention however that this additional information while beneficial is no substitute for out of sample testing regardless of how it is performed. --- In [email protected], "rhelfer123" <[EMAIL PROTECTED]> wrote: > > Fred, > > Yes, by "black box" I mean a mechanical system. In the case of my > post, I mean a mechanical system where the code is available, since > you would be creating the black box, and not someone else. > > Entry and exit points will always be clear in one sense because these > are ultimately dependent on physical buy and sell signals from the > trading system. On the other hand, how the entry and exit is handled > may be purely discretionary... where the stop is set, when profits are > taken, trailing stop or regular stop, scaled trading, etc -- or this > could be purely mechanical. Your choice. > > I personally find my best money management methods to be primarily for > controlling my emotions, which is why I prefer to leave money > management out of the mechanical portion of a system. Money > management, however, is what will usually ultimately determine a > trader's profitability, in my experience. I have taught many people > with no real trading system to trade much more profitably by simply > using scaled trading and stop orders, for example. > > Everything I have posted is under the knowledge that it is my personal > approach to system analysis, and I find it works best for my needs. I > understand my posts may inadvertently nullify some of the work you > have posted here, but my intent is not to single you out and disregard > your work. There will always be many people who will want to use your > work. I also build fully mechanical systems, and I use your work to > support these efforts, for example. > > Your contributions here have been most beneficial to many AB users. I > am one of them. > > Thanks, > > rhelfer > > > > --- In [email protected], "Fred" <ftonetti@> wrote: > > > > By "black box", I assume you mean a mechanical system ... yes ? ... > > Assuming of course that one can see the rules inside the box and > they > > aren't open to interpretation then the box isn't black or even > > gray ... > > > > How do you objectively identify the entry and exit points of trades > > and collect the statistics for use in an MCS of a discretionary > > system ? > > >
