Holy Grail 19/01/01+ Backtest results..

[ChartMan]

Tonight's pick is LCI.......

IEN up 10% in 4 days, RFT up 27% in 6 days...

 

[Alleycat]

Martin. This is one of the better backtests I have seen. I was just wondering whether you have ever run 1 year backtest results through Tradeit.

If just trading equities like this then one always need to consider things like commission, stamp duty, income tax, and the spread (i.e. difference between bid and offer). I have previously calculated on the amounts that I normally trade with that I need to make at least more than 10% before I stand to gain any from going long on a share. I dont know much about options and futures but if I traded this strategy, just buying and selling ordinary shares, then I would only have made money on CCT; RFT; SYI and IEN would just be borderline at present. Therefore only 4 of the 13 shares in your backtest would currently be profitable. If we want to make a Holy Grail then we need to improve this to always select equities that rise above 10% of the purchase price.

 

[ChartMan]

AlleyCat- get some sleep mate! I agree with you. With a small pot and BIG spreads, ( as is often found on these types of illiquid shares)then one needs to plan for at least 10% rise. Conversely, your immediate ingoing loss would be 10% too, if you were to sell straight away.

The point of this excercise, is to give you all an insght into a selection /tracking program that has selected a few big risers in the past. The posted results are for relative comparison only, and are only vaguely realistically achievable.
Taken as a gross % then they are 100%.If I were to tweek the trading program, I could get another 5-10% out of it, but again, that's not the point.


Just noticed you were in OZ. ......
Hence the time of posting.
Martin