There is only on criterion of good system: optimal risk/yield parameter. If MTS does generate both signals it have to provide statistical advantage - to generate more profit transactions than loss ones. From statistical point of view it means that after end of trade interval amount of money exceeds initial value. MTS has statistical advantage if:

(average profit transaction) * (percentage of wins) > (average unprofitable transaction) * (percentage of losses)

But this expression is not accurate enough. It doesn't take in count expenses - commission, overheads, etc. If expenses are high profitable MTS may become unprofitable one. If transaction commission is $50 than 40 transactions will cost trader $2000. Such expenses will shrink $20000 account by 10%. Let's correct our expression:

((average profit transaction) * (percentage of wins) - (expenses)) > (average unprofitable transaction) * (percentage of losses)

One of criterions for measuring MTS effectiveness is selection of optimal amount of transactions called reliable pattern. Choice of reliable pattern is a quite subjective thing. Some traders require only 10 transactions and others require no less than 1000. Well, last ones are too conservative but mathematically right. But if we are allow these price movements are mostly random then we may say that many pattern transactions are quite random at win or loss. That's why we must have many transactions to reduce influence of random factors on total statistics.

At other hand many experienced traders are contending that 30-35 transactions are enough; for seasoned traders 10 are enough. It is all about trading is area where art and experience meet science. We may say only one thing - more checks do mean better results. Real pros understand that there is no perfect mechanical system ideally suitable for assets of financial market. Art of pros is choice of configurable system - which will be called best after training.

http://www.e-mastertrade.com Mechanical Trading Systems portal, stock and index price forecasting You may subscribe on daily news for free here: http://www.e-mastertrade.com/en/main/services/signup_news.asp

Contributory IRA: Once you roll your proceeds into this type of IRA, you may still contribute annually if you qualify (check with your accountant). However, 401k portion can no longer be rolled back into another 401k with a new employer, should you ever want to do that. So you eliminate possibility of using loan provision with those funds. While it is possible to borrow against an IRA, it’s more limited than borrowing against an employer 401k. Check with your tax preparer for details.

Rollover IRA: This type of IRA allows you most flexibility. You may roll proceeds back into a 401k plan if you want to utilize a loan provision. However, for tax reasons you should not make annual contributions to this IRA. If making annual contributions becomes important to you, simply open another contributory IRA.

Since Rollover IRAs are usually set up at a brokerage firm, you’ll have access to their entire universe of mutual funds. With this type of IRA, you can also employ an independent investment advisor to manage account for you. (Yes there is a cost for that, but an effective advisor will more than make up for that in greater returns than you would get without him or her.)

Most of my clients have found that investment results we've obtained with their personal IRAs were far superior to those yielded by their employer 401k plans or their personal investing efforts. This has been mainly due to a combination of better choices and a methodical approach to investing which has kept my clients in market during good times and out of it altogether during severe declines.

Bottom line: Rollover IRAs offer opportunities to maximize benefits and provide flexibility not usually available with employer 401k plans.