My semi-automated strategy

[grimesd]

I ended 2010 with a small profit, so I'm not too disappointed. However November and December weren't good at all, mainly because I pushed through my second system into production before it was ready, hence some some heavy loses.

I think I've ironed out all the bugs now, so roll on 2011....

Starting balance is $10,812.76.

 

[HowardCohodas]

Just a thought or two.

When trying a new strategy or making significant modifications to a current one, my policy is to take it back to the prototype stage (paper trading). I believe that "getting the bugs out" belongs in the prototype domain.

If the prototype stage is successful, I move the strategy to the pre-production stage (small money trading). Here I can make certain that some of the limitations of paper trading have not led me to falsely qualifying my strategy.

Only then do I move to production (serious money trading). Here, even small modifications will result to going back to pre-production.

This discipline has saved me huge amounts of money.

Your patience will be rewarded.

 

[grimesd]

Just a thought or two.

When trying a new strategy or making significant modifications to a current one, my policy is to take it back to the prototype stage (paper trading). I believe that "getting the bugs out" belongs in the prototype domain.

If the prototype stage is successful, I move the strategy to the pre-production stage (small money trading). Here I can make certain that some of the limitations of paper trading have not led me to falsely qualifying my strategy.

Only then do I move to production (serious money trading). Here, even small modifications will result to going back to pre-production.

This discipline has saved me huge amounts of money.

Your patience will be rewarded.

Yes you're right. I skipped to stage of forward testing on a demo account and paid the price.

The initial backtest results were good and I was too keen to get it running live.

Another lesson learned.

 

[Hotch]

Bah, I would suggest forgetting paper trading and just trading small sizes.

 

[HowardCohodas]

Bah, I would suggest forgetting paper trading and just trading small sizes.

Easy for you to say. It's not your money. :-0