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Nothing wrong with it, but I think the best thing to look at is the equity
curve. Was the ride up a smooth one or a rough one? And I also want to be
sure that superior performance for, say a ten year test, wasn't based on
incredible performance in year one and two and mediocre or poor performance
in the rest of the period. After all, would you want to trade a system that
did well overall but barely broke even for many years at a stretch?
-RB
>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
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