July 18, 2011

After the Myst's XDev modified script simulation of a few days ago; I had a few questions that were left unanswered such as: Would the stop-loss distribution be the same on another data set? Does this modified script have enough general properties to be extendable to other datasets? Would the performance metrics average about the same?

Questions that could only be answered by doing another simulation on a different data set. And still having the need to compare to previous simulations using other scripts, the 2nd dataset was chosen. The performance results are available under the Simulations menu.

To all the questions, the answer was yes as expected. You are trading mathematical equations and as such, they are independent of the idiosyncrasies of the stocks in the portfolio. Nonetheless, the trading procedures still remain highly dependent on the path each stock is taking. The trading methods used seem to pump cash into the system by exploiting short to mid-term market swings. At each turn pumping more cash to eventually buy even more shares to hold for the long term; and at any time, should the price be right exchange its convictions for instant profits in the bank in order to restart a new series of profitable trades.

This trading methodology has fascinating properties.


 Created on ... July 18, 2011,    © Guy R. Fleury. All rights reserved.