As far as I'm concerned, a system has to be trusted until it
proves to no longer work. What might be worrisome about the SPY
system is if its performance since going live starts to be worse
than during its backtested period. Until that happens, no
meaningful information can be culled from a couple of trades.
However, as I've said in the past, it is not a good idea to take
backtested results as if they indicate the true value of the
system. We will have to get extensive realtime results before
we can evaluate the system.
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As far as I'm concerned,
SPY LONG???
Posted by algyros on 3rd of Aug 2011 at 09:44 am
As far as I'm concerned, a system has to be trusted until it proves to no longer work. What might be worrisome about the SPY system is if its performance since going live starts to be worse than during its backtested period. Until that happens, no meaningful information can be culled from a couple of trades.
However, as I've said in the past, it is not a good idea to take backtested results as if they indicate the true value of the system. We will have to get extensive realtime results before we can evaluate the system.