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model may fail in the future: indeed, out-of-sample returns were negative As in Tests 1 and 2, trades lasted about seven bars and long trades were more profitable than short ones The percentage of winners was 42% Although the limit entry did not eliminate the damaging impact of transaction costs, performance improved The limit order did not seriously reduce the~number of trades or cause many profitable trends to be missed, the market pulled back after most breakouts, allowing entry at more favorable prices That a somewhat arbitrary, almost certainly suboptimal, limit entry strategy could so improve performance is highly encouraging The equity curve again shows that this kind of system once worked but no longer does Table 5-2 shows that, with few exceptions, there were positive returns for the currencies and oils, both in-sample and out-of-sample, consistent with findings in earlier tests.



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The SONET frame consists of 810 eight-bit bytes, and like the T1 frame is transmitted once every 125 msec (8,000 frames per second). Doing the math, this works out to an overall bit rate of

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Coffee continued to trade well on both samples, and the S&P 500 remained profitable in the verification sample Conclusion A limit-based entry can significantly improve the overall performance of a breakout model Substantial benefit is obtained even with a fairly crude choice for the limit price It is interesting that the markets to benefit most from the use of a limit order for entry were not necessarily those with the lowest dollar volatilities and implied transaction costs, as had been expected Certain markets, like the S&P 500 and Eurodollars, just seem to respond well to limit entries, while others, such as Cocoa and Live Cattle, do not.

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Code coverage is a measurement used in software testing that describes the degree to which the source code of a program has been tested The prime intention of the tests are to verify that your code does what it's expected to, but that it also documents what the code is expected to do Code coverage can be thought of as an indirect measure of quality because we're talking about the degree to which tests cover the code Keep in mind that only code coverage test should not be thought as verifying the end product's quality All flavors of Visual Studio 2010 product does not support Silverlight code coverage testing If you have Visual Studio 2010 Ultimate or Premium installed, you are all set for Silverlight code coverage test.

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HIGHEST HIGH / LOWEST LOW BREAKOUTS Would placing the thresholds further from current prices reduce whipsaws, increase winning trades, and improve breakout performance More stringent breakout levels are readily obtained by replacing the highest and lowest close from the previous model with the highest high and lowest low (HHLL) in the current model Defined this way, breakout thresholds now represent traditional levels of support and resistance: Breakouts occur when previous highs or lows are taken out by the market One possible way to further reduce spurious breakouts is by requiring the market to close beyond the bands, not merely to penetrate them at some point inside the bar Speeding up system response by using a stop order for entry, or reducing transaction costs by entering on a pullback with a limit order, might also improve performance Test 4: Close-Only HHLL Breakout with Entry at Open of Next Bar.

the fundamental transmission rate of the SONET STS-1 frame. That s a lot of bandwidth 51.84 Mbps is slightly more than a 44.736 Mbps DS3, a respectable carrier level by anyone s standard. What if more bandwidth is required, however What if the user wants to transmit multiple DS3s, or perhaps a single signal that requires more than 51.84 Mbps, such as a 100 Mbps Fast Ethernet signal Or, for that matter, a payload that requires less than 51.84 Mbps! In those cases, we have to invoke more of SONET s magic.

In situations in which multiple STS-1s are required to transport multiple payloads, all of which fit in an STS-1 s payload capacity, SONET allows for the creation of what are called STS-N frames, where N represents the number of STS-1 frames that are multiplexed together to create the frame. If three STS-1s are combined, the result is an STS-3. In this case, the three STS-1s are brought into the multiplexer and byte interleaved to create the STS-3, as shown in Figure 3-55. In other words, the multiplexer selects the first byte of frame one, followed by the first byte of frame two, followed by the first byte of frame three. Then it selects the second byte of frame one, followed by the second byte of frame two, followed by the second byte of frame three, and so on, until it has built an interleaved frame that is now three times the size of an STS-1: 9 270

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