Chapter 12 A thought-provoking question
limited trading experience. Thus, I would like to share some of our verified trading experiences with you.
It is important to note that a trading model with outstanding performance during back-testing cannot always be used for actual trading. The definition of "excellent performance" varies within the industry, but for me, it means trading models with a win rate of over 60% and a high risk-reward ratio. However, such models often carry significant hidden risks that may not have been identified during back-testing but could result in fatal damage during actual trading.
Additionally, we have explored the possibility of creating a trading model with consistent losses and implementing a reverse trading strategy for profitability. Our trading team has made progress in testing such a model, but two key points must be considered.
To begin with, the reverse trading model must be predicated on losses caused by price spread. If the trading model's performance loss is due to transaction costs or slippage,/>/>/>
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