Hi QC Community,

When is a strategy "good enough" to go live?

I understand that the answer will differ depending on the person, but that is also part of why I'm asking (i.e., so that I can learn from the ones who are better at this than me).

For example, would you trade the below strategy on a live account? The strategy is a simple trend following system (cutting losses and letting profits run). The equity result ($10,000 → $138,641.62) looks promising but I fear that I'm fooling myself somehow. I'm aware of the low win rate (30%), but I do think that I would be able to actually run this strategy live. The portfolio turnover (28.75%) is also a bit low, but I'm thinking that I should be able to combine this strategy with a mean reversion strategy as the next step.

All constructive feedback is appreciated.

Thanks.

238147_1689842544.jpg238147_1689842554.jpg

 

Author

Henrik Strand

July 2023