Originally Posted by GQgeek
^^ Ya, I'm not trying to rain on anyone's parade, but making any sort of assessment of success or failure of a strategy after a couple weeks of trading is pretty much worthless imo. That's really the only point I'm making.
Obviously there are people out there making good returns on this kind of thing but the important thing is can you keep them going for a substantial period of time?
Out of curiosity, how much data was this tested against and for how long (by whatever metric you're using)?
Oh yeah, you're absolutely right. I can't help but monitor the damn thing, even though I know I should really just sort of sit back and passively manage it with some zen-style serenity until at least the 6mo mark. But, hey, easier said than done! Instead I spend my day flipping between bberg.com and ft.com and watching CNBC and freaking out as if I'm an active trader. It's stupid, but I'm sure I'll get over it after a while. At least the algo keeps me from trading emotionally.
We backtested over the last decade, and we have a lock-in of one year for our funders. Even one year isn't necessarily great long-term proof, and we believe that this model's efficacy will decay with time. However, if it performs in line with our backtested annualized returns over that first year, then it probably means that the concept is strong, and we can build a lot of different models on a lot of different equities and "reboot" them periodically to ensure they remain fresh and effective. That's the long term plan. And we have some funders who are in for small amounts on the proof-of-concept fund who want to scale up quite a bit if things go well over the first 6-12 months.