Profitability

[mszym]

This is an excellent forum and backtesting seems to offer lots of potential. Has anyone found that computerized backtesting has increased their profitability?

I know there are no guarentees but is it profitable to learn EFS Backtesting?

[demarcog]

Re: Profitability

Originally posted by mszym
This is an excellent forum and backtesting seems to offer lots of potential. Has anyone found that computerized backtesting has increased their profitability?

I know there are no guarentees but is it profitable to learn EFS Backtesting?

mszym,

This is really a complicated question the long answer of which can take several pages and if interested when I have more time I will be happy to discuss at lenght (and have done so, search the forum for backtesting, profitability, etc).

The shortened version of one respose is to ask you what is the alternative to determine whether any trading "systems" makes money?

Some jump in and have an intuitive skill and profit initially (never saw anyone do that).

Others jumipn and if they don't burn through their trading capital, after 1-3 years of trading professionally (all day every day), make money (the odds are against you though...)

Some simply jump in an loose alot of money for a long time (me!).

Others have the patience to sit in front of the screen and "paper trade for days, months, years until they learn how to trade to the point of showing a profit (no me....wish it was though).

Yet others come to realize that the only logical, rational approach is to conceptualize, design, program, backtest, retest, redesign, backtest, test in tick bar replay, test in tick replay, test in realtime,, etc.

Then and only then, trade real money ....

So, IMHO, absolutely, it's the only approach what will increase the probability of you being successful.

Only you need to be passionate and actually enjoy it or else, the only other reasonable approach is:

Ggive you money to someone who is passionate and already did the testing and has a proven track record. The management and incentive fees you pay them will be a good investment.