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Hi Tech/A,IMO, "Exits" are probably more important (together with the use of good Money Management) than "Entries" when it comes to developing & using a reliable trading strategy. Interestingly, I have also read in a couple of books (by different authors) that random based signals can offer similar odds to that of a specific entry signal.However, surely Money Management (as well as Position Sizing, etc) should also include focusing on those trades which offer the best Reward:Risk ratio's? If this is the case, then Entries have to be an integral part of this. Afterall, isn't one of the important aspects of a system, to focus on "low-risk" set-ups?Also, you mentioned the importance of "knowing" ones own system with regard to drawdowns, performance, etc. This obvious makes perfect sense, but can I ask how you would personally confirm this? If you rely on backtesting, then don't you run the risk of "curve-fitting" the system to previous data??Just interested in your thoughts....\Kind regards,Chorlton
Hi Tech/A,
IMO, "Exits" are probably more important (together with the use of good Money Management) than "Entries" when it comes to developing & using a reliable trading strategy. Interestingly, I have also read in a couple of books (by different authors) that random based signals can offer similar odds to that of a specific entry signal.
However, surely Money Management (as well as Position Sizing, etc) should also include focusing on those trades which offer the best Reward:Risk ratio's? If this is the case, then Entries have to be an integral part of this. Afterall, isn't one of the important aspects of a system, to focus on "low-risk" set-ups?
Also, you mentioned the importance of "knowing" ones own system with regard to drawdowns, performance, etc. This obvious makes perfect sense, but can I ask how you would personally confirm this? If you rely on backtesting, then don't you run the risk of "curve-fitting" the system to previous data??
Just interested in your thoughts....\
Kind regards,
Chorlton
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