I'm building a scalping EA, and will be forward testing it on a live account with only a couple hundred dollars. Since it's a scalping EA it has the potential to make as many trades in a week as some systems do in a year.
That brings up my question of when do you know a strategy is profitable over the long run. If it is profitable after 50-100 trades on the week, is that a large enough sample set to say it will work? Or can I only say it works if it survives several months of trading; at which point it will have produced hundreds and perhaps thousands of trades?
So whats the measure?
A. Time
B. # of trades
C. Both.
If C, at what point would you trust the system? I guess I could ask the same question if the answer is A or B too.
TIA,
Matt
That brings up my question of when do you know a strategy is profitable over the long run. If it is profitable after 50-100 trades on the week, is that a large enough sample set to say it will work? Or can I only say it works if it survives several months of trading; at which point it will have produced hundreds and perhaps thousands of trades?
So whats the measure?
A. Time
B. # of trades
C. Both.
If C, at what point would you trust the system? I guess I could ask the same question if the answer is A or B too.
TIA,
Matt