Funny that I did not backtest the trading system that I have been using for 2 years. And I realised this is precisely the reason why I am not profiting from it. During the recent gathering, I was decided to do the back test and was convinced that the system works. It was me that did not apply the rules properly. Here are some results of the back testing that I have done: Back testing parameters:

1. Allocate $10,000 when buying/selling a stock
2. Commission of S$25 per transaction
3. Financing charges not considered
4. Based on 1 year timeframe (before 1 Aug 10)

One of the rules of the trading system is to choose a nice trending stock, and thereafter, buy after the resistance is broken and sell after the support is breached. To make the test more robust, I have included the stocks that do not have nice trends. A total of 7 stocks are shown here. 4 of them have nice trends (CSE Global, CWT, Kepland and OSIM) and 3 of them have sideway movements (OCBC, STI ETF and Capitaland). CSE Global Read more...