Think like the market.

When analyzing the past performance of a trading system, we must consider several factors to determine whether the returns obtained make sense compared to th...

ALGORITHMIC TRADING

Javier González-Barros, CFTe

3/24/20242 min read

Why has joseja 2 mini nasdaq had that increase?

When analyzing the past performance of a trading system, we must consider several factors to determine whether the returns obtained make sense compared to the asset being traded.

During the years 2001-2013, the Nasdaq traded at relatively low levels. This means that the potential point gains from trading Nasdaq futures were limited, especially when considering commissions, slippage, and the monthly cost of the license.

It's not the same to gain 1% on $1,000 as it is on $10,000.

The higher the asset rises, the greater the potential point gains for trading systems, whether for better (if the asset moves in favor) or for worse (if it moves against).

This system trades long and short. It doesn't matter whether the Nasdaq goes up or down; that won't prevent the system from capturing points in the market. However, it's preferable for the Nasdaq to continue rising because although the percentages remain the same, the value of each point remains constant. If this system continues to operate as effectively as it has done so far and the Nasdaq rises to 30,000, what will the equity curve look like?

Let me insist

The most valuable asset is time. The same goes for trading systems. Trade with systems with a lot of audited time and I guarantee that if you build a portfolio of such systems, I win you as a client for life. Let me insist, but do not use systems with little audited time.

a bullish bullishing a bull in a city
a bullish bullishing a bull in a city
think like the market
think like the market

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