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John wrote:
> In case anyone was wondering why I would want an exit like this it is purely
> for testing out the relative effectiveness of various different entry
> strategies (by minimising the effect of the exit strategy). In a real
> system the exit strategy would be just as important, if not more important,
> than the entry strategy.
Just to add a bit of information:
At www.rinasystems.com under Articles you'll can find a .PDF-file covering
the measurement of system efficiency, i.e. how to calculate and interpret
their so called entry/ exit/ and total efficiency. These numbers provide
additional insight into how well your signals are.
The calculations for Long Positions are as follows, where:
Entry and Exit Price are speaking for themselves,
Lowest and Highest Price are the relative low/high values during the trade
Total Efficiency = (Exit Price - Entry Price) / (Highest Price - Lowest Price)
Entry Efficiency = (Highest Price - Entry Price) / (Highest Price - Lowest Price)
Exit Efficiency = (Exit Price - Lowest Price) / (Highest Price - Lowest Price)
Thus you'll see how well your signals worked.
Andreas
---
Andreas Grau aka agrau@xxxxxxxxxxxxxxxxxxxx
I know you believe you understand what you think I said,
but I am not sure you realize that what you read is not
what I meant. -- Found in an English pub
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