The Efficient Profit Hypothesis (EPH)

The Efficient Profit Hypothesis (EPH)

i read this article written by david munro for oanda sg.

i totally sux at programming and couldnt test any system myself even with MT4, which some on FF consider to be totally unreliable for backtesting anyway.

so for those who backtest systems regularly, is this a common phenomenon?

thanks in advance.

Could be summed up as trends begin when trend traders give up. He must be paid by the word

so a basic trend system, like the one he used (2 MA cross) would be a good proxy for the various trend systems out there? not that you can trade directly off the 'equity curve' but would it make sense to build something around it?

he might be paid by the letter... lol

2MAs, SMAs or EMAs - sure any of them will be decent to produce a moving average system, but before you start spending an eternity on those kind of endeavours, remember that simple crossovers were the birth of automated trading. The bar's a lot higher now - check out nuclearphynance as an eg.

by the letter lol - I'm in the wrong game