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ZooKeeper wrote:
>
>
>
> How about ROA? Anybody besides me uses Return on Account? It is the
> NetProfit divided by acount size required (which includes drawdown per
> contract and marginper contract). Any opinions?
>
>
Goodness knows i am not qualified to say, but it seems like profit /
dd+margin is the best measure of bang for the buck. If one system has a
profit of $2 but a dd of $25 and another has a profit of $1 with a dd of
$5 you could actually make more money with the second one if you have a
limited account ( I think).
Maybe profit factor is a good measure of sensitivity of the results to
your assumptions about slippage and comm? If each trade is barely more
profitable than the losses, then if you are slightly wrong about your
slippage it might actually lose. So a profit factor of, say 1.1 would
be a no-no. Opinions on what it should be?
Now if i only had a testable system.... still working on some ideas
since I'm not doing much trading at all. :|
Conrad Bowers
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