I'll test with last three months IEOD data.
It should give atleast some percentage of profit every month...
Testing with last three months IEOD data is not the right approach, its better to isolate historical data wrt various different market conditions and then test to see how the system performs under these different conditions. But that’s beside the point
Your "some" means what? Is it 2% or 4% or 20% plz be specific
Also what about the risk parameters? What’s the percentage drawdown you are ok with?
What about other performance parameters?
How much standard deviation is acceptable on the equity curve?
Are you looking for any specific benchmark minimum figures for Sharpe ratio, CAR/MDD or RAR/MDD, etc..
And on & on & on .........................
It would be better if you define all these clearly before one even thinks of getting into this kind of interaction.
Hey Prabhu.