Changing the test period start date or equity

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damian
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Changing the test period start date or equity

Post by damian » Thu May 22, 2003 12:21 pm

Not much here, just a simple idea that I have used over the years.

When I run a test using start equity = X I always look at the performance in the first year. If it was a very good (say the first year makes 100) I run a second test except using start equity = X-100.

I then run a third using start equity = X again, except the start date of the test is one year later than the first test (thus omitting the brilliant year).

These three tests are not apples and apples (and a third apple), but they do reveal how much final equity is (obviously) a function of start equity, or in this instance, 'start+1 year' equity.

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