What metrics do you use to measure trading success?

Discussion in 'Trading' started by jdegg79, Apr 7, 2018.

  1. Not really. Just redundantly emphasizing that no free lunches exist. Discretion has its place in strategy design and research, but no place in the heat of battle. An algo is pretty much dogshit without expert discretionary input.
     
    #21     Apr 9, 2018
  2. jdegg79

    jdegg79

    Really appreciate your feedback. What number do you consider for a PF significantly above 1.0? Thanks again for you help.
     
    #22     Apr 9, 2018
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  3. Xela

    Xela


    My own rule of thumb was always that - in principle - something that had a PF of 1.5+, over 300+ trades, was worthy of further time, analysis, potential refinement, thought and effort, and should be taken seriously.

    (I wouldn't "write it in stone", though: it's only really a personal preference. I'm sure there are people who'd only take seriously something higher than that, and maybe people making a living from things lower than that, in PF terms. And of course many people using more complicated parameters than "PF" in the first place! I've always found it useful, though - and it's certainly easy enough to understand and monitor.)
     
    #23     Apr 10, 2018
  4. adamou

    adamou

    Achieving Success in the markets is not about instinct, divine inspiration or spontaneous intellectual combustion. It is largely depended on intelligent data processing, sound method and the successful management of risk etc.

    The most useful metrics to measure you trading success are given below

    Win ratio

    equity curve vs. benchmark

    Sharpe ratio

    percentage of time profitable vs. benchmark (consistency)

    drawdown

    Average win larger than average loss

    average time in the trade

    Biggest win larger than biggest loss

    net profitable at the end of the session after commissions

    Percentage of daily range captured.
     
    #24     Apr 10, 2018
  5. Are you a parrot??

    What metrics do you use to measure trading success?
     
    #25     Apr 11, 2018
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  6. volpri

    volpri

    #26     Apr 11, 2018
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