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Peter,
I look for systems that feel right. The elements that I look at are
1) how often it trades
2) time frame of trading
3) ease of use
4) historical winners vs losers ($ and number of)
5) does it work in markets i like
6) likelyhood of system producing in the future
7) is it natural to the market
My friend (who makes millions every year) that works for big company trades
bonds he uses one hour charts and has a risk of 8 ticks on a trade. We both
look at the daily charts and he looks at the weekly charts.
We use very similar techniques and talk a lot. He wanted to go short the bonds
today. He called me..I told him that his trade may be sucessful but
for me watching mainly daily charts this up move is just to easy of a money
maker....and my techniques do not have a reversal signal until maybe 127 or
so....(They may blast through that number also)
He can afford to go short here with his time frame and I will not because of
mine. ....So Peter when you look at what to use design something that works
for you.
Regards
Mitch
owner-realtraders@xxxxxxxxxxxxxx wrote:
> Is profit factor (gross profit / gross loss) the best measure to compare
> systems ?
>
> I have tested several systems and often the number of trades differs
> dramatically with different parameter sets.
> This can have a huge affect of the net profit of different combinations,
> and seems to make straight profit meaningless as a comparison measure.
>
> I notice that some journals do not even list profit factor as part of their
> results.
>
> Is this something wrong with profit factor ?
>
> All comments appreciated.
>
> (I use tradestation)
>
> Thanks
> Peter
Mitch Ryder
Ynos@xxxxxxxxxxxx
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