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Are per se trading systems whith linear equity curves also exponential?

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Jordi Bassaganas
3532
Jordi Bassaganas 2013.08.13 13:12 
In other words, do stable exponential systems exist? Thank you!
Documentation on MQL5: Math Functions / MathExp
Documentation on MQL5: Math Functions / MathExp
  • www.mql5.com
Math Functions / MathExp - Documentation on MQL5
enbo lu
Moderator
1951
enbo lu 2013.08.13 13:27  

I don't think so.

Can you create a system without a loss? 

Jordi Bassaganas
3532
Jordi Bassaganas 2013.08.13 14:20  
luenbo:

I don't think so.

Can you create a system without a loss? 

Hi luenbo. I agree with you, it seems there are no trading systems without losses. However, it seems that this condition doesn't determine the existence of, let's say, linear trading systems. Such systems exist, they are imperfect but they are out there, and they are linear! Why should they exist? Or you meant that there are no linear trading systems? As they do, would it be possible turning these systems' linearity into exponentiality?

BHC
243
BHC 2013.08.13 18:21  
By linearity can I take it you're referring to the equity curve's slope? If yes then they do exist. For example the EA's that come in box with MT5 like ExpertMAPSARSizeOptimized.mq5 will have a near linear curve if one tests with very low leverage and a very high initial deposit, for any instrument with its default input parameters. What would make such a curve not just linear but curved, as you may have implied, is one's position sizing method.
Jordi Bassaganas
3532
Jordi Bassaganas 2013.08.13 21:28  
BHC:
By linearity can I take it you're referring to the equity curve's slope? If yes then they do exist. For example the EA's that come in box with MT5 like ExpertMAPSARSizeOptimized.mq5 will have a near linear curve if one tests with very low leverage and a very high initial deposit, for any instrument with its default input parameters. What would make such a curve not just linear but curved, as you may have implied, is one's position sizing method.
Yes, I meant that. In theory the sizing method is what can make the system more or less exponential I think. The idea is very appealing!
Documentation on MQL5: Math Functions / MathExp
Documentation on MQL5: Math Functions / MathExp
  • www.mql5.com
Math Functions / MathExp - Documentation on MQL5
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