Monday, 28 October 2013

Could You Trade this Algo?

The pix below show the metrics of a trading system trading the ES. There are no optimizable parameters. As you can see, it has a low win rate. But it makes money month after month. It has no target and it has no stop loss. There are no parameters to go out of sync with current market conditions.

Best of all, look at  the average trade size.

Maybe, the question should be not "could" but "would you want to". There are many ways of making money in the markets. Just the same number of ways of making money as losing it because it's a zero sum game - every trade has someone on the other side. If you don't like this system then you could just take the other side of the trade. Does saying "I wouldn't want to take either side" make sense?

Doing what everyone else is doing gives you the results that everyone else is getting.

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