System Trading and Analysis

At System Select Group we are dedicated to researching and developing trading systems.

The following points demonstrate several key components for a successful trading system:

• A substantial profit over the period traded
• A high percentage of profitable trades
• A high average trade net profit
• A high number of consecutive, winning trades
• A low number of consecutive losing trades
• Low draw down
• Lack of optimization (no curve fitting)
• Consistency

While the above characteristics describe ideal trading systems, it should be noted that no system can be expected to adequately respond to every possible market move. Benefiting from hindsight, backtesting can show how a system may have performed in the past, but it should not be used as an indication of how the system might perform in the future. In other words, a system's past performance, no matter how apparently robust, can not guarantee future results.