What's more important Pfactor or ROA?

Discussion in 'Strategy Building' started by protrader-2K5, Aug 1, 2005.

  1. What do you consider a more important indicator when testing a system?

    Profit Factor or Return on Account?

    I an messing with the tesing functions of Tradestation and was curious

  2. AaronCapps

    AaronCapps Global Futures

    Return on account is to senstive to what you would consider a decent account size. Also your conservative approach may be anothers aggressive approach.

    profit factor isn't affected by that and gives you an idea of wiggle room. If your profit factor is to close to 1, then more then likely the strategy could fall apart with real world factors. If your profit factor is to high, like 4 or 6, then maybe your strategy is to curve fit.