How do you evaluate a tradings system?

Discussion in 'Trading' started by maildigger, Nov 4, 2008.

  1. P&L is an obvious choice but how can you "rate" it. When is a system/edge good enough?

    I've been testing a method (on indexfutures) the last 6 months with following results :

    Style = intraday, 1 trade/day
    Risk each trade= 1% of account
    Reward = on average 2% each month
    Biggest drawdown is 3%
  2. Big AAPL

    Big AAPL

    You are describing your rules, not the results of a system. Impossible to "rate it". A performance report over those six months might get some system guru's to hop on board and evaluate it for you.