POLL: What is most important measure of "trading success" to you?

Discussion in 'Risk Management' started by rcanfiel, Feb 6, 2008.

POLL: What is most important measure of "trading success" to you?

  1. Profit Factor

    8 vote(s)
    19.5%
  2. sharpe/sortino ratio

    2 vote(s)
    4.9%
  3. equity curve

    6 vote(s)
    14.6%
  4. winning percentage

    2 vote(s)
    4.9%
  5. equity curve (appearance)

    1 vote(s)
    2.4%
  6. total profit

    10 vote(s)
    24.4%
  7. maximum drawdown

    3 vote(s)
    7.3%
  8. #trades (for a profitable system)

    1 vote(s)
    2.4%
  9. average profit/trade

    2 vote(s)
    4.9%
  10. annual growth %

    6 vote(s)
    14.6%
  11. max leverage factor (risk exposure)

    0 vote(s)
    0.0%
  1. POLL: What is most important measure of "trading success" to you?
     
  2. Chics, it's about the chics!
     
  3. how much time away from the computer and trading the money i make lets me get away with...:p

    the more time the more successful id say
     
  4. RP, a percentile value, where it is a measure of relative performance as compared to what is possible.

    The list of those who could be included in the percentile groups presently is not regularly available. A substitute is the combo of reported results of pros and the market's performance.

    The closest analogy may be the RS of a stock as determined by IBD.

    Any measure of trading success has to be tied to what the traded market offers. Further, it is always a good idea to measure improvement of performance over time.

    Some of the things a person can do to better understand where he is in the infinite scheme of things is to consider what is possible. As anyone looks at the choices the poll makes available, most of these types of measures are missing.

    It is difficult to consider doing reality checks for most. At some point it is a good idea to come to understand what is possible.

    The simple task of considering how much of the time during TRH's one understands what is going on is a good rough consideration. A good basic example is traders who make money in one portion of the day and give it back during another portion. Another example is patterns. Being able to understand what portions of days contains what patterns is important. Just as important, is understanding what is going on when there are no patterns in effect.

    Trading success depends on knowledge, skills and experience. It is a progression of milestones against which anyone can measure. Read the list and see that is a dirth of such measures. All are required for success.

    In terms of the strictly financial measures (making money), in my opinion the most important measure is the measure of the value of the exponent on the equity curve. A linear chart has an exponent of 1 which is often related to a factor called consistency. An exponent of 1 is a measure of standing still in terms of knowledge, skills and experience. The exponent combines two factors: the profit factor and the factor related to effectiveness and efficiency.
     
  5. pneuma

    pneuma

    TIME WITH FAMILY