I recently bought a system that the seller claimed was 100% mechanical. After reading the manual I have not been able to reproduce the same historical results. My results are only 20% of what is advertised. Is it legal to make claims that can not be backtested and verified? Again. its a 100% mechanical system.
everyonerich
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no such thing as 100% mechanical,
during bank holiday's market still open and you still able to enter trade, do you think gonna expect the system will produce the result like normal market condition and will work?
during bank holiday's market still open and you still able to enter trade, do you think gonna expect the system will produce the result like normal market condition and will work?
NetTecture
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No. Basically - if you can proove that the backtest information was wrong, then you can due. This is false advertising. If I say my system went long USD to EUR last year at parity (1:1) and the exchange rate was never close... then I make a false statement. Regardless what I may write into a disclaimer, this is fraud. Point.
That said, remember about comission, slippage etc. - often they are not included, and comission in particular can make a hugh difference. Plus make sure you did not make an error....
Check multiple times. Go through their trades manually and compare to the prices you have. Make sure your data is right etc.The bactesting system, which I have, can only read daily bar data. There is no way to mechanically backtest it intraday. The problem with the software is that it doesn't take into account intra day moves....and it is an intra day system. In the manual its says that the software assumes a certain condition has happened, it can only read daily not intraday. I have asked repeatedly for an explanation.
No. Basically - if you can proove that the backtest information was wrong, then you can due. This is false advertising. If I say my system went long USD to EUR last year at parity (1:1) and the exchange rate was never close... then I make a false statement. Regardless what I may write into a disclaimer, this is fraud. Point.
That said, remember about comission, slippage etc. - often they are not included, and comission in particular can make a hugh difference. Plus make sure you did not make an error....
NetTecture
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Well, then seriously how can you say that you only got 20%? Your numbers are meaningless.
You can maybe proofe total bullocks (fills in the list that are outside daily range), but for anything else, you have to get in and do proper testing.
You can forward test it (i.e. paper trade it some months) to see how valid the generated data is.
You can maybe proofe total bullocks (fills in the list that are outside daily range), but for anything else, you have to get in and do proper testing.
You can forward test it (i.e. paper trade it some months) to see how valid the generated data is.
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