I had received a request from someone to post the ideal equity curve for a system. Well, although there is no ideal curve, I would like to post this equity curve of a system I used between 2004 and 2009. Check the image first, then read my comments below.
For me, the success of this system is not between 2003 and 2010. Any system during this period would give the equity curve mentioned above as we were in a Bull market. For me, success is between 1995 and 2002 when the markets were very volatile and were not trending. If one needs to build a robust system, test it during this period and see if you get this curve. If you dont, then probably your system is only doing well in Bull market. This for me is sign of a conditional market based system. Such systems will eventually fail.
Since the system above did well between 1995-2002, it was very obvious that it would do very well between 2003-2007. The result between 1995 - 2002 is almost similar to result between 2003-2007. This is what one must target.
Currently I am not using this system since it is failing to give similar results. This could very well be a phase and it could start giving profits again. I am just watching the results of this system carefully.
Tc