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How to evaluate a trading system?

aidemart (aidemart)
Sep 29 2014 at 06:47
7 posts
alexlowrisk posted:
This is my opinion:

1 : You have to look at reputable brokers where you fund the account
2 : You have to see the AUM of the fund, is a 1.000$ account or a 100 Millions account, this is an important factor also.
3 : Usually Pamm performs better than signals, less technical problems like trades not copied or slippage that have a big impact in the strategy.
4 : Do not look only at the profit : In general grid or martingale systems seems they gain a lot, but one day ( without advice you ) the account is destroyed totally
5 : Be realistic with yourself : If the best Hedge fund traders make 30-50% a year how can you pretend more? You can have more if your risk is incredible high!
6 : Strategy : The best strategy most of the time are FLAT. So they are very selective, you do not have to stay always with open positions in the market.
7 : I like HFT trading, but this is my choice. Some brokers and funds manage them and invested millions, so is not an EA of 50$.
8 : Try to not follow the mass... the most popular strategies have drawdown of 50% and more... and the mass, the 95% of people lose money in this game.



Agreed Alex

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