Medlem sedan Dec 01, 2011 95 poster
Forex Signals By Forex RingLeader (Fxringleader)
Dec 09 2011 at 09:10
(editerad Dec 09 2011 at 08:31 )
Historical Back test that are FAULTY!
CURVE FITTING FAKE/BAD BACKTEST RESULTS – WATCH OUT AND WHAT TO LOOK FOR!
Hello we have been trading Forex for since 2001, and provide Traders access to a very experienced group of Money Managers Over at forexringleader.com I wanted to write this short article about “curve fitting” what is it and how it will get you into trouble with false expectations and ultimately make you lose your trading account.
Some people do curve fitting on purpose to make a system seem profitable so they can sell it for a fast profit they unload a few dozen copies and disappear on you and rename the system and sell it again under a new name. These curve fitted system appear to produce fantastic results.
We also noticed a lot of people are curve fitting there system results on purpose or may not understand the nature of curve fitting and do it by mistake. It makes a strategy produce fantastic results over the past 5 and 10 years but in real live trading your account is going to go to zero balance fast... So becarful and do not be blinded by crazy high percentage returns. Don’t Fall For it.
Not everything that glitters is gold. If they are trying to sell a new system see to it they have an already established and profitable trading system attached to their account that has both “Track Record Verified” and Trading Privileges Verified' and is using a real account and not a demo. Also keep an Eye on “Lots” Located in Advanced Statistics, some of these systems say 1,000+ plus lots not the best option for a person using a standard trading account. And watch the draw down on some of these systems. So far I have seen 40-50% drawdown’s and worse…
This is crazy and high risk and you’re floating with a fiery Margin call disaster. Also avoid and account's that are based on micro also called 'cents' account because they are trading with amounts so low it’s not realistic for a normal account with normal leverage “it will not work” We have not covered everything but just wanted newbie’s and general traders to be aware of “Curve Fitting” but feel free to email us on anything we missed and we will update this post. You can reach us at: