This thread is for any known mechanical system which is profitable or can remove all tax costs associated with trade consistently.
For intraday stocks the cost is approximately 0.06% of tradevalue per trade or 6% of trading value for every 100 trades.
When we define a system the following should be taken into account.
a. The time taken after which the system will become profitable or breakeven. eg 4 months, 6 months, 1 year. b. The system should have been proved to succeed atleast 4 /5 times or 8/10 times.
c. The number of trades taken into account for testing.
d. The number of symbols over which the system has been tested. Good if system is tested over a number of symbols and results calculated as average.
e. The maximum drawdown percentage.
f. The annual returns over the period.
g. Read somewhere its good to backtest 1500 prior trades. Every 1500 previous occurence should be taken as per rules
For intraday stocks the cost is approximately 0.06% of tradevalue per trade or 6% of trading value for every 100 trades.
When we define a system the following should be taken into account.
a. The time taken after which the system will become profitable or breakeven. eg 4 months, 6 months, 1 year. b. The system should have been proved to succeed atleast 4 /5 times or 8/10 times.
c. The number of trades taken into account for testing.
d. The number of symbols over which the system has been tested. Good if system is tested over a number of symbols and results calculated as average.
e. The maximum drawdown percentage.
f. The annual returns over the period.
g. Read somewhere its good to backtest 1500 prior trades. Every 1500 previous occurence should be taken as per rules
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