is more appropriate to sit on the sidelines.

Then, after the equity line, we imm

ediately
check average trade, profit factor, percent profitable, average win/average loss
and how
the monthly returns were distributed throughout the years. Just from these indic
ators a
proper judgment about the trading system can be drawn without much worry about b
eing
on the wrong side.
2.5 Conclusion
So far we have covered the most important theoretical aspects of the trading sys
tems
optimisation and performance evaluation. It was a quick overview of the universe
of
notions that this topic embraces, but we hope that this brevity will lead to a m
uch more
powerful understanding.
We can assert in conclusion that trading systems are a scientific approach to tr
ading where
nothing is left to discretion. It is not a certain business, obviously, but it i
s a business that
deals with probability and that allows the trader to trade the markets exploitin
g a statistical
edge.
You will be able to expand this knowledge, delving into the nuances of trading s
ystems
evaluation and optimisation, by reading the texts we included in the bibliograph
y at the
end of the book.
Unfortunately it is impossible to have a full grasp of the subject without deali
ng with the
practical application of trading systems. Trading systems
development is not a theo
retical
intellectual challenge, but a practical experimental approach to markets. Writin
g codes,
testing them and then optimising them is a process that allows the trader to acq
uire a
practical view of the markets that is sometimes much more important than theory.
Knowing how to follow this process will save much demanding work and it will hel
p to
solve situations that otherwise will be out of reach for the average trader.
In the following chapters you will have a practical view of what a systematic tr
ader does
when they develop, evaluate and optimi