What a Good Candidate System Looks Like
Learn to spot systems worth saving and testing further
- Recognize healthy equity curve patterns worth pursuing
- Understand minimum performance thresholds for candidates
- Know when to discard a system and move on
- Save promising systems for later analysis
Video coming soon
Andrew will record this lesson video
Not All Systems Are Worth Keeping
By now you've run a few builds and seen various results. Some systems look great, others don't. But how do you decide which ones are worth saving for further testing?
This lesson gives you a practical checklist to identify "candidate" systems—ones that are promising enough to deserve more attention.
The Candidate Checklist
A system is worth saving if it passes all of these basic checks:
Upward-Trending Equity Curve
The curve should trend from lower-left to upper-right. A flat or declining curve means the system isn't profitable—skip it.
Profit-to-Drawdown Ratio ≥ 2:1
Net profit should be at least twice the maximum drawdown. Ideally 3:1 or better. If profit is $5,000 and drawdown is $4,000, that's too risky.
Sufficient Trade Count
Look for at least 50-100 trades for statistical reliability. A system with only 15 trades might just be lucky—the sample is too small.
Consistent Performance
Profits should be spread across the test period, not concentrated in one lucky stretch. A system that made all its money in 2019 but lost everywhere else is suspect.
Red Flags to Avoid
- • Steep cliff drops in the equity curve (catastrophic losses)
- • All profit at the very end of the test period (curve fitting)
- • Very few trades with huge profits (likely luck, not skill)
- • Drawdown nearly equals profit (risking everything for gains)
How to Save a Candidate System
When you find a system that passes your checklist:
- Click on the system in the results list
- Use File → Save or the equivalent option to save the project
- Give it a descriptive name so you can find it later
- Note down the key stats (profit, drawdown, trade count) for comparison
During your trial, you may not find many systems that pass all checks—and that's okay. The sample project and limited time aren't meant to produce your trading portfolio. The goal is to learn the process so you can run many more builds after purchasing.
What Happens After the Trial?
With a full license, you'll be able to:
- Run builds on your own market data (not just sample data)
- Use the Robustness Lab for deeper validation
- Apply walk-forward optimization to test adaptability
- Export systems to TradeStation, MultiCharts, or NinjaTrader
- Optionally use advanced add-ons like EWFO and Portfolio Analyst Pro
The candidate systems you identify now are just the starting point. Real-world trading requires additional validation steps that the full Strategy Guide covers in detail.