Ok help me out here, I have been trying to put together a 'Trading system' for quite a while now... unsuccessfully.
What I don't understand is this... suppose hypothetically,you were to trade nifty near month fut based on a completely random choice.
For example,end of every day flip a coin and decide to either go long or short next day and set the stop-loss at 1% of previous day's close.(i.e if the index closed at 5000,and you were to go long then stop-loss=4995 and viceversa for short ).... and square off the position before end of day.
When I ran this b.s 'system' on eod data from 2007 to 2013,it resulted in net gain of 14,000 point profit over a period of 1870 days,with a hit rate of 15%. On average that's a surprising net(brokerage+slippage of 1.5 point deducted) profit of 7.6 points every day... or a return of approx. 650% p.a on your principal.
Don't most 'trading systems ' do similarly or slightly better? why bother with a system at all?
What I don't understand is this... suppose hypothetically,you were to trade nifty near month fut based on a completely random choice.
For example,end of every day flip a coin and decide to either go long or short next day and set the stop-loss at 1% of previous day's close.(i.e if the index closed at 5000,and you were to go long then stop-loss=4995 and viceversa for short ).... and square off the position before end of day.
When I ran this b.s 'system' on eod data from 2007 to 2013,it resulted in net gain of 14,000 point profit over a period of 1870 days,with a hit rate of 15%. On average that's a surprising net(brokerage+slippage of 1.5 point deducted) profit of 7.6 points every day... or a return of approx. 650% p.a on your principal.
Don't most 'trading systems ' do similarly or slightly better? why bother with a system at all?