Futures Trading Software - Choosing a Package For Big Profit Potential!

Posted in Trading Commentary, Submitted by Trading Critic on Tue, 2006-05-16 04:23.

2. Curve fitting

Many traders buy systems that are “curve fitted� to the data and they see different rules to trade individual commodities.

If a system uses different rules to trade individual contracts its “curve fitted� and likely to fail.

“Curve fitting� is simply fitting the rules of the system to the data to make a profit. When the system enters the real world and trades you can’t curve fit in hindsight!

The result is inevitable, losses.

A clue to a “curve fitted� system is one that has lots of different variables and “unique� rules to trade individual commodity contracts.

If a system is based on sound logic then it should work on any commodity that, trends with the same rules and parameters.

Most of these systems have hypothetical track records with low drawdowns and should be avoided

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