Hallo traders. Does anybody have any experience or know further information about trading your equity curve? I have done a lot of backtesting during the last month. I found out regardless which system I use, it only works for a while and then stop working. It almost looks like some kind of trend. Thanks a lot.
I think that the problem you have is the same when you are trading the actual price chart. You know when it is going to trend up and when it is going to trend down. I think it is much better to focus on finding some systems that allow you to take all the trades and still expect good results. Even if you could predict the equity swings, there are also problems with that system during the normal periods. However, aren't system traders use systems to keep the discretionary part out of the equation? If you can predict the trend in your equity curve, you should predict the market trend. That way you could forget about the system.