Hello,

You did not account for slippage. Use 0.5% or higher commissions to simulate 
slippage and backtest again.

Best regards,
Tomasz Janeczko
amibroker.com
----- Original Message ----- 
From: "samu_trading" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Saturday, June 16, 2007 6:08 AM
Subject: [amibroker] Why does this great system not work in reality?


> All,
> I'm frustrated. I backtested and optimized a very simple system in 
> AB as following. 
> (buy highest ROC gainer of the last 3 days and some additional 
> fringe conditions; exit is 2% trailing stop, applied immediately)
> PositionSize=-20;
> 
> SetTradeDelays(1,1,1,1);
> 
> Buy= ROC(Close,3)>Percentile(ROC(Close,55),100,99) AND Close>MA
> (Close,150)AND Volume > Percentile( Volume, 100, 90 ) AND Volume > 
> 100000 AND Close<5 ; 
> 
> Sell=0;
> 
> ApplyStop(2,1,2,1,False,0);
> 
> 
> It looked just great from the numbers when backtesting over the last 
> 5 years:
> CAR~170% MaxSystemDD=4.3%, number of trades >1000
> 
> However, when I bought stocks at the next day's opening, I only had 
> losers and got stopped out. Where does the difference between the as-
> is and to-be come from?
> 
> Thanks, Samantha
> 
> 
> 
> Please note that this group is for discussion between users only.
> 
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>  
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> 
> 
> 
> 

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