2 questions

#11
Hi shubh03
Hit ratio is important
10 trades, 7or8 win ,2or 3 ST hit ,its ok, you r trading system is good
10 trades, 5win,5 ST hits, u need to develop the trading sys
10 trades,3or2 win ,7or 8 ST hit, don’t trade the sys
(1st do paper trade and go for a real trade )

happy trading
thanks for ur views
but as my experience says its not worked so i searching other ratio in this forum

can u throw some light on 2nd question
 

jahan

Well-Known Member
#12
Dear all,

i have 2quaries
1)how v know that our trading system is perfect (other then profit ;))
means some ratio wise

2)is there any ratio between profit and system drawdown ?

thanks
Hello,

for Q1)

it depend upon individual, what is perfect means in your sense...in my opinion there is no perfect system...every system has its pros and cons...u need to define yourself what perfect sytem means..at what ratio ur comfortable and call it a perfect System.

see iam happy with around 25 to 45 % success Ratio anything beyond 50% is holygrail to me with 1:2.5-3.5 R/R....but i didn't came across with such system.

for Q2)

Yes....if u wish...u can calculate any ratio in respect to any variable if it make sense.....to me Ratio for profit and System DD doesn't make any sense(purely my opinion)...if u really want a tradable system look for Sharp Ratio 1.5 or above and Avg-loss must be less than avg-profit.

Regards,
 
Last edited:
#13
Hi Muthu

We need to look at Expectancy, as vZ has pointed out, high win/loss does not necessarily translate into a profitable system . . .

Check out this link . . .

http://www.learningmarkets.com/determining-expectancy-in-your-trading/


:) Happy
hi happy_singh

in my experience Hit ratio is most important , is works for me very will, I give 1st priority to hit ratio, all come next
risk reward ratio
in my experience ,no mater how good in RRR ,trader will not stand for long time they have bad hit ratio, its my opinion,

Happy trading
 
#14
Hello,

for Q1)

it depend upon individual, what is perfect means in your sense...in my opinion there is no perfect system...every system has its pros and cons...u need to define yourself what perfect sytem means..at what ratio ur comfortable and call it a perfect System.

see iam happy with around 25 to 45 % success Ratio anything beyond 50% is holygrail to me with 1:2.5-3 R/R....but i didn't came across with such system.

for Q2)

Yes....if u wish...u can calculate any ratio in respect to any variable if it make sense.....to me Ratio for profit and System DD doesn't make any sense(purely my opinion)...if u really want a tradable system look for Sharp Ratio 1.5 or above and Avg-loss must be less than avg-profit.

Regards,
my system sharpe ratio 1.85
if r/r is rrr then rrr 34
np/sdd 1/2
is it good ?


my thinking is that if these fig are good or best here i trade on it
and if not then i try to optimize it which is double edged sword:)
 

jahan

Well-Known Member
#15
my system sharpe ratio 1.85
if r/r is rrr then rrr 34
np/sdd 1/2
is it good ?


my thinking is that if these fig are good or best here i trade on it
and if not then i try to optimize it which is double edged sword:)
Hello,

R/R=Payoffratio


regards,
 
#17
my system sharpe ratio 1.85
if r/r is rrr then rrr 34
np/sdd 1/2
is it good ?


my thinking is that if these fig are good or best here i trade on it
and if not then i try to optimize it which is double edged sword:)
What is the expectancy of a trade, together with system draw down, you get a good picture of the system.
 

jahan

Well-Known Member
#18
ohhh...


payoff ratio is 2.03

Hello,

Until now Ur system looks Great....

Can u tell "Total No of trades","Net-profit","Avg-loss/trade" and "Avg-profit"

Regards,
 

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