The 100-Pip Traderthe side, I have a part-time job and that’s being a trader [laughter].
So yeah, I still engage in that process of testing every day. In fact,
before we had the phone call today, I’ve been working with another
set of moving averages on another timeframe chart together with
people who have come out to my office to have aback testing
fiesta, as I like to call it. My entire office is organized so that groups
of people can enthusiastically engage in the process of testing
together.
Q: So no one in the office knows Easy Language or any other
programming language?
A: I actually now know Easy Language well enough to program
most of what I do, and additionally I work with at least two different
programmers if I needed to help optimize mechanical systems if
I chose to do so. But it’s very seldom that I’ll optimize something
or program it until I actually have already proven that it works
just the way it is. So I might program it or optimize it in order to
facilitate the process of sounding off alarms or alerting me to the
opportunities, but I still don’t engage in any type of mechanical
trading whatsoever, meaning I never let the computer make the
entries and the exits.
Q: So you back test more for reference and to create a founda-
tion?
A: Yes, absolutely. It’s a scientific process: hypothesis (the ideas
for a trading system), then experimentation, then results, and so
forth. If I can’t verify it, I won’t trade it. If you and I plotted a ran-
dom indicator on price charts, on any timeframe, on any currency
pair, with at least 5,000 to 10,000 bars of data, and locked ourselves
in a room for six months, we could build a system from that one
indicator. It’s all about verification and experimentation for me. I
have no actual preference for one type of methodology, whether it
be fundamental analysis, price action analysis, order flow analysis,