RE: R Squared as a test criteria

[rast...@aol.com]

Mike, et al;

I don't understand why R Squared (R2) is not normally used as a test criteria?  With an R2 above 0.96, we know that the equity curve is fairly consistent, hence low risk.  The other test criteria would be a max intra-trade drawdown be less than 20%  - perhaps less.  Now the Net Profit may not be as great however, the system would be "tolerable" to trade.  What am I missing?

Thanks.

Red

[MikeBryant]

Who says it’s not? That’s why the program contains the correlation coefficient.

Mike Bryant
Adaptrade Software