How to Select the Right SAT

There are lot of SATs in the market and many of them are not suitable for Live/Real Trading or have stopped working (exactly the same as with other assets). However, among them there are SATs that are still performing well, in audited /real, and maintain their reliability, providing clear advantages to trading.

The most difficult thing  (exactly the same as with other assets) is the ability to select which SATs are suitable and valid for investing/trading.

From our point of view, the main guidelines to follow when selecting SATs are:

  1. Select SATs that are currently being profitable, valid and offering real value to investor/trader.
  2. Filter them according to your risk level profile and requirements.
  3. With those that have remained, let´s apply an appropriate Asset Allocation and Money Management methodology.

Let us focus on what we think are some of the main guidelines for right SATs’s selection:

  • We will only use audited/real periods for evaluate them. Never use backtesting data.
  • Similarity between audited/real data and backtesting data. Both must be similar.
  • The annual audited/real ROI per Max DD. The higher, the better.
  • Audited/Real Annual Earnings compared to Capital Required to get them. The higher, the better.
  • % of Winner Months in Audited/Live Period.

NEVER USE SATs THAT HAVE NEVER BEEN AUDITED/LIVE. FOLLOW THEM BUT DON´T USE THEM FOR TRADING. GIVE THEM TIME.