@copypasteaee,
1. Thats why I said in my previous post that I dont prefer Averaging, the best we can conclude from the information you have provided is that your system is consistent on average over 8 yrs. It does not tell us the trend whether your system is improving or deteriorating or linearly consistent.
2. Hence I prefer to use the total return:max drawdown over rolling measurement period to analyze the system performance and trend. I use 1 yr measurement period, however one can use any period such as week,month,quarterly etc. This is how I analyse my system performance:
2012: 24.29%:5.4% ->
4.5:1 -> Ok as per system backtesting results
2013: 21.08%:6:2% ->
3.4:1 -> Ok, Acceptable, Mark as Worst Return/Drawdown year.
2014: 202.44%:8.6% ->
23.5:1 -> Very Good, Analysis market favorable for trend following, Mark this as best Year
2015: 51.56%:7.3% ->
7:1 -> Ok Acceptable, continue with same system.
2016: 19.29%:20.2% ->
1:1 -> Red Flag, Analysis: Market was very volatile for trend following. Not much can be done, no change needed continue with the same system. Mark this as the new worst year.
2017: 111.98:6.8% ->
16.5:1 -> Good Result so far. No changes needed in system.
3. The total return:max drawdown values just helps me to analyze how my system is performing over the years, has it lost the edge, if yes does it suggest abandoning the system.
4. As I had already mentioned in my earlier post, Risk:Reward/Money management is dependent on your system, if you need to improve your system then you need to run a backtest on some new ideas on your system with various risk values and check its performance. Since you have been using your system for 8 years, I believe you would have definetely backtested your system and you were comfortable with the risk:reward of your system which is giving you on average 2.5:1 total return to max drawdown.
I am getting a feeling that people are just reading the posts for time pass without analyzing or putting the effort to test and check its validity. Without putting some efforts I am not sure if anyone is actually getting some value from these posts and also there is no point for me putting the efforts to write such length posts..