How to measure success? - The performance parameters

T

tnsn2345

Well-Known Member
#1
#1
Dear Friends,

Having myself used different performance parameters, I felt that we could all chip in with different (and could be unique) performance parameters that we all might be using. This I term had termed as 'The progress report" in my other thread.

While we have discussions and thread on methods / systems / instruments etc. discussions on this subject will help the seasoned as well as budding traders to put in a place a performance monitoring system.

I look forward to your contributions. My thoughts will follow as we go futher.

Regards,
 
T

trader.trends

Well-Known Member
#2
#2
Tnsn

Although I have not given it any marks or percentage, recently I started reviewing my trading on the following parameters
1. Traded all signals of my system
2. Entry as per system
3. Hard SL entered as per system
4. TSL entered as per system
5. Exited as per system
6. Position sizing done as per system
7. Not done any arbitrary trading

It has given me better results than before. I consider a trading day successful If I can answer Yes to all the above parameters. If I can do this in the long run, I allow the positive expectancy of the system a chance to manifest itself. Then money will be a definite by product of it.
 
T

tnsn2345

Well-Known Member
#3
#3
Dear TT,

Quite an comprehensive list and really really sticking to basics. Good way to begin, and well begun is half done. While I would want that we discuss only the different parameters, I am quite sure that our discussions may digress on to how to stick to these parameters, ways to be disciplined using these parameters etc etc...

Thank you for making headway.

Regards,
 
T

tnsn2345

Well-Known Member
#4
#4
There are two ways to reach from point A to point B or say from 100 to 200.

a) 100 - 130 - 90 - 70 - 110 - 150 - 90 - 140 - 160 - 130 - 200
b) 100 - 110 - 120 - 130 - 140 - 150 - 160 - 170 - 180 - 190 - 200

Success is just not in reaching the destination, it is in the journey itself.

Hence, the lesser variance one may have on the portfolio returns the better and merrier the journey will be. Standard Deviation (SD) is a good measure of performance of the portfolio, and one's ability to keep the portfolio in a self defined SD range will be a challenge worth taking....

Ok...ok...before we talk about SD, variance on the portfolio level there are a lot many smaller, different and unique performance parameters which one may have to a) evaluate a single trade b) evaluate a trading day c) a trading period and d) a trading portfolio.

....

Regards,
 
linkon7

linkon7

Well-Known Member
#6
#6
Profit made at the end of the week is like the runs batsman scores playing under various conditions. I can judge my system based on profits and other ratios, but as a day trader, i judge myself only on one parameter, i.e. the comfort factor i feel with the market.

Market movement should not make me uneasy at any point of time. Most profit days are when market was trending and my only skill was to watch the screen and let the profit run.

Some days test my skill to the limit. Stoploss gets hit. hedge absorbs all the profit. Nothing clicks the way i expected. If i can manage my trade on such days to my own satisfaction, then i mark those days for bar - replay and consider those days a brilliant success.
 
O

oilman5

Well-Known Member
#7
#7
tnsn2345 said:
Dear Friends,

Having myself used different performance parameters, I felt that we could all chip in with different (and could be unique) performance parameters that we all might be using. This I term had termed as 'The progress report" in my other thread.

While we have discussions and thread on methods / systems / instruments etc. discussions on this subject will help the seasoned as well as budding traders to put in a place a performance monitoring system.

I look forward to your contributions. My thoughts will follow as we go futher.

Regards,
Click to expand...
...........................................................
Few could think like you.......out of box ,as well as clarity.Hope this thread will be as popular like other your others'one. Definitely PROGRESS REPORT has a factor like
1]DISCIPLINE,
2]CONFIDENCE BUILD UP TO SYSTEM
3]OR SWITCHING TO NEW SYSTEM,
4]MONETARY RETURN.Of course
5] understanding on market.
So these 5 one , according to me part of report card.
........................
Definitely you will show something better.
Regards
oilman
btw.....r u fund manager now?
 
SavantGarde

SavantGarde

Well-Known Member
#8
#8
Hi Oilman,

None of the things you have listed.... will make sense.... One needs to Put the Trades through a Statistical Grind to come up with 'Figures' to Judge Performance.... There are atleast 18-22 that I can think of ...& I have never been a student of Statistics... think what a real Statistician would come up with.....!!!

'Z-Score' was one such that I mentioned earlier....

I am sure TnSn... will outline some of those in due course of this thread...!!!

SG

oilman5 said:
...........................................................
Few could think like you.......out of box ,as well as clarity.Hope this thread will be as popular like other your others'one. Definitely PROGRESS REPORT has a factor like
1]DISCIPLINE,
2]CONFIDENCE BUILD UP TO SYSTEM
3]OR SWITCHING TO NEW SYSTEM,
4]MONETARY RETURN.Of course
5] understanding on market.
So these 5 one , according to me part of report card.
........................
Definitely you will show something better.
Regards
oilman
btw.....r u fund manager now?
Click to expand...
 
Last edited:
A

ashwani chadha

Well-Known Member
#9
#9
linkon7 said:
Profit made at the end of the week is like the runs batsman scores playing under various conditions. I can judge my system based on profits and other ratios, but as a day trader, i judge myself only on one parameter, i.e. the comfort factor i feel with the market.

Market movement should not make me uneasy at any point of time. Most profit days are when market was trending and my only skill was to watch the screen and let the profit run.

Some days test my skill to the limit. Stoploss gets hit. hedge absorbs all the profit. Nothing clicks the way i expected. If i can manage my trade on such days to my own satisfaction, then i mark those days for bar - replay and consider those days a brilliant success.
Click to expand...
dear linkon7,i thank you for the ,in my view as, one of the best reply
 
A

ashwani chadha

Well-Known Member
#10
#10
trader.trends said:
Tnsn

Although I have not given it any marks or percentage, recently I started reviewing my trading on the following parameters
1. Traded all signals of my system
2. Entry as per system
3. Hard SL entered as per system
4. TSL entered as per system
5. Exited as per system
6. Position sizing done as per system
7. Not done any arbitrary trading

It has given me better results than before. I consider a trading day successful If I can answer Yes to all the above parameters. If I can do this in the long run, I allow the positive expectancy of the system a chance to manifest itself. Then money will be a definite by product of it.
Click to expand...
dear trader.trends,i feel that your above answer is also one of the best answers!!!
 
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