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Okay here I go: does anyone know of a good, keep it simple book - or part of a book - that covers backtesting that would explain it from the ground up for a newbie
Can you help answer these questions from other members on NexusFi?
- graph looks great to start
- profit factor of 1.18 is a bit too low, acceptable strategy should be around 1.7+, good strategy ~2.0+
- Avg trade is $31.70. aim for at least $100, otherwise you will be trading for nothing after slippage
- 3 to 4 parameters excluding open and close time seems fine, the more parameters you introduce the easier it is to create a nice graph. so graph can be deceiving
- 5768 trades over 10 years means your system generates 1 to 1.5 trades a day. can your criteria be too loose?
I've read Tomasini and Jaekle's book too and I can recommend it too to you, valuable insights into how systems traders approach their process. Davey and Tomasini use different processes but their overall approach is similar.