Disliked{quote} Copernicus, Not sure if you've seen this, but your mention of LTCM brought it back to my mind. I thought that it might be of interest to you. Soultrader was widely respected when he used to contribute here at FF. I find his conclusions interesting: "The lesson here and my message to you is that no matter how much you test, no matter how far you go back there will always be a market condition that your test does not have. .... System designers need to add one more thing into their arsenal....Ignored
when looking backtest and live curves I can simply see the difference as anyonelese and it wasnt a surprise that it will fail
5. How to identify when the market conditions cause the system to fail.
identify when system will fail is such identifying trend and sideways, if it would be possible there wouldnt be any trading market while system would collpase in a day or so due everytrader would make billions
The equity curve should be used to identify, not the price charts
6. What to do when it's failed.
Plan B, nice and true
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WBS Where are Buyers and Sellers