Reducing profit variability from technical trading systems by Milton S. Boyd and B. Wade Brorsen
ARTICLE SYNOPSIS ...Reducing profit variability from technical trading systems by Milton S. Boyd and B. Wade Brorsen
Some technical traders spend a sizable portion of their time searching for the perfect trading system or the ""optimal"" parameters, hoping the newly discovered system will give them the highest-possible profit. However, research shows that some currently available popular trend-following systems have provided a reasonable profit, even when traded with conservative margin levels.
Unfortunately, the variance of the profits from these technical systems tends to be very high. In fact, the variance o...