I have found in examining the results of my actual trades that removing the top 10% actually has put me into the breakeven/slightly negative category. What does it mean when all of a systems profits come from 10% of the winning trades? That 10% of winning trades actually represents 5% of all trades. The other 90% of winning trades balance out all trades that result in breakeven or negative results.
then it's easy, just trade the most profitable ones ... though this is joking, it contains some truth, namely to analyse if specific market conditions, like vola, Ma slope, relative daily range correlate with win amount. peace
These results represent the best tools that one system produces in all different types of markets. The point is not to change the system. It's a winning system. My point is that statistically it doesn't follow a bell curve.
Regarding the 3D graph, your system will show a peak and possibly you chose the parameters that produce a peak like it going forward. It is generally considered much more likely to succeed if you pick parameters that keep you away from the peak and produce a nice smoothly increasing profit curve, with less dependence on a few good trades. Max
hmmm...... What kind of time frame do you develop systems? Is it a Daytrading system or does it hold position overnight? Good Trade. Trend
Spreadem, I've been trading and developing day trading system. My systems generate an average of one trade per day. Commission and slippage is very hard to overcome when I trade more often. How many trades do you generate a day on average? Good Trade. Trend