Summary. In summary, scrambled data provide a new method to test a system over many different market conditions

In summary, scrambled data provide a new method to test a system over many different market conditions. You can observe the model's perform­ance under such simulations, and gain much needed confidence on how it works and learn to recognize when it does not. You can then use your insight to create filters that may improve system performance, reduce the number of trades, and create a neutral zone for system trading. You can also develop equity curves to check your interval estimates of stand­ard deviation and therefore improve your projections of future draw­downs. You can also perform a subjective evaluation of market condi­tions under which the system does particularly well or poorly.

Chapter

A System for Trading

A speculator's trade plan is often little more than greedy entries, hopeful risk control and fearful exits.