026: Systematic trader Robert Carver discusses trading rules, what makes a good trading rule and the advantages of using continuous rather than binary rules. He also shares insights into over-fitting and the challenges of walk-forward testing that can mak
Better System Trader
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Is There a Difference Between Trading Models?
I think too many people fit individually on each thing they're trading. They might fit one model on Eurodollar, another on cable, another on crude oil futures. Now this is only valid if it's really true that these things are so different, that it makes sense to use a different trading rule. If you actually look at the statistics abstracting away from costs because obviously all these things have different costs, it's pretty unusual to find firm evidence that a particular set of trading rules makes more sense on one instrument than another. I mean, I'm looking for rules that work over long periods of time and also over different instruments.
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