MoneyTec Traders Community Forum - View Single Post - The learning cycle for a newbie trader

Trader02 · 18-02-2007, 11:44

[quote=Soul-Trader2004]

you also said "I have personally met a couple of professional traders who make serious money. They don't trade from mechanical systems and they shake their heads and roll their eyes if you ask them about backtesting."

Im not talking about computer backtesting here im talking about hand testing - proving or disproving a hypothesis that your method has a greater chance of success than failure.

"But I have to tell you, I've never heard a professional claim they can kick back on the beach and let a mechanical system make money for them. In fact, people like Linda Bradford Raschke and other well-known successful traders go to some trouble to disabuse newbies of the notion.
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Agreed! Handtesting a hypothesis is a key ingredient. Hundreds of hours of work spent doing this across instruments and markets. Increases confidence immensely. Foolish to place money at risk without testing methodology.

Professionals kicking back on the beach while their systems are running on auto & making money constantly?

Michael Covel's book, Trend following lists names of some huge hitters who just have a simple office with one secretary -- plus a computer room with their system running non-stop on autopilot. These guys manage some real big money for clients. Didn't say nothing about "beaches" but I presume any of these fellows could buy his own beach in a heartbeat.

18-02-2007, 11:44	#33
Trader02 Banned Join Date: Jun 2006 Posts: 236 Downloads: 0 Uploads: 0 Rep Power: 0	Re: The learning cycle for a newbie trader - PART 2 [quote=Soul-Trader2004] you also said "I have personally met a couple of professional traders who make serious money. They don't trade from mechanical systems and *they shake their heads and roll their eyes if you ask them about backtesting."* *Im not talking about computer backtesting here im talking about hand testing - proving or disproving a hypothesis* that your method has a greater chance of success than failure.** "But I have to tell you, I've never heard a professional claim they can kick back on the beach and let a mechanical system make money for them. In fact, people like Linda Bradford Raschke and other well-known successful traders go to some trouble to disabuse newbies of the notion. " quote] ----------------------------------------- Agreed! Handtesting a hypothesis is a key ingredient. Hundreds of hours of work spent doing this across instruments and markets. Increases confidence immensely. Foolish to place money at risk without testing methodology. Professionals kicking back on the beach while their systems are running on auto & making money constantly? Michael Covel's book, Trend following lists names of some huge hitters who just have a simple office with one secretary -- plus a computer room with their system running non-stop on autopilot. These guys manage some real big money for clients. Didn't say nothing about "beaches" but I presume any of these fellows could buy his own beach in a heartbeat.