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Dans un courrier daté du 17/09/98 15:49:23 , vous avez écrit :
<< Here are good examples
of expected figures from two different types of systems:
System 1: Short - term.
Win 70% or better
Avg W/L 1.50 or better
Profit factor : 3.0 or better
Max DD : Less than 1/4 total net profit
System 2: Long-term
W % 45% or better
Avg W/L 3.5 or better
Profit Factor 5.0 or better
Max DD : Less than 1/4 total net profit
Regards,
Walt Downs
CIS Trading Cos.
>>
I strongly disagree with these criterion.
The only intersting thing is ROMID (return on deposit +DD).
You must achieve at least a DD= 1/10 of total net profit, 1/20 better but
more difficult over the ong run
% of winning trades and the like are only psychological measurement.
I prefer to trade a <40% winning trade system with a low or acceptable DD and
high ROMID than anything different.
The only point that is impossible to live with is the DD.
Even if you achieve high performance on other fiels and encounter an
unexpected DD, you will stop to trade, genrally on a serious loss, even with a
70% of winning trade and other magic ratio.
This will be the case with a 1/4 DD (DD is made to be reached some day and of
far more).
All these consideration are coming from real world experiences.
Sincerely,
Pierre Orphelin
www.sirtrade.com
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