This is a part quarter update. Obviously the quarter is not over yet.
The market has been quite strong over the last month, although not as good as December.
A $50,000 plus gain for the month is ok by me - see the December quarter chart below for comparison. The portfolio had no buy or sell signals for the month and I am fully invested aside from some dollars I set aside for a tax payment.
I took my first trade on a monthly system I developed. I will see how I go waiting to the end of the month before taking buy and sell signals. The system performs very well in back testing, but I am not entirely convinced that I am ready to trade a monthly timeframe. I am sure that some people would think that I am crazy trying this approach! I find that exiting on stops during the month significantly degrades the results.
One advantage is that the system can handle more capital which should come in useful for my super fund. I have tested on random entry and exit price in the month that the signal is given, as well as on the open and various other strategies. They all make money, but I am usually better off getting in / out towards the beginning of the month.
If everything goes as I expect in terms of the monthly system I will use it for the super fund only.
Steve
4 comments:
Stevo,
Great results. No wonder your rushing to put up some early "quarterly" stats! :)
Do you use AmiBroker in conjunction with TradeSim for your backtesting?
The ASX Gorilla.
ASX Gorilla
I do use Amibroker in conjunction with TradeSim for Backtesting, although I do a lot of testing first with Amibroker alone.
If I think I have something worth trading I use TradeSim to finalise the system, looking at position sizing and Monte Carlo etc.
regards
Stevo
Hi Stevo, I have just come acrossyr blog and this trend approach. how did you get started, what did you read etc. How much does the system cost. would be good to have a blog or chat with
thanks
hambone
hambone
The system didn't cost me anything other than time, effort and software costs since I wrote it myself using Metastock / TradeSim / Amibroker.
I got started in systems trading using Roy Lawson's Trade Equity work in Metastock. TradeSim and Metastock are a great combo. although I use AmiBroker these days, combined with TradeSim where necessary.
I got a lot out of Market Wizards, especially the CANSLIM stuff. Van Tharp's book with the really long title is also a strong infuence.
regards
Stevo
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