On ignore, troll. You never know, one day you might actually post something of value rather than being an effective troll. Can't say I'm holding my breath though. You're simply an unfortunate beneficiary of other people's goodwill.
With enough trades, metrics like sharpe ratio or profit factor is good. Problem is most strategies will never reach that stage.
One number on its own is meaningless, you just confirmed that. You need other variables to make sure the numbers have reliable meaning, like number of trades. Even then profit factor on its own doesn't say anything about draw down or other numbers that can give you an indication about past risk.
Yes I agree - I must be more precise - I want to measure a strategy on a selftrading system (bot) - for the first step I want to compare it to buy and hold - the interesting part is that I make money also in long term (e.g. 2 years data) but is this enough? no I dont think so - as you wrote I think I have to monitor risk as well....
Attaches some values: Strategy 1: (1 year data - 30min timeframes) NetProfit: 91.66 % GrossProfit: 155.52 % GrossLoss: -63.86 % Profit Faktor: 2.4352 Gain2Pain Ratio: 1.4352 Number of Trades: 69 Number of Winning Trades: 28 Number of Loosing Trades: 41 Max Drawdown: currently unknown (not calc. yet) Strategy 2: (1 year data several timeframe) NetProfit: 299.55 % GrossProfit: 732.86 % GrossLoss: -433.31 % Profit Faktor: 1.6913 Gain2Pain Ratio: 0.6913 Number of Trades: 557 Number of Winning Trades: 186 Number of Loosing Trades: 371 Max Drawdown: -30% I think I have to much lossing trades...
Cmon..... You seriously believe that your pitch gets you anything more than coffee and a donut at a hedge fund capital raise???
I think a strategy is good when it makes money, with low DD (<20%) over 28 pairs for 20 years on 9 timeframes with zero spread (just to know the edge) AND when it has only a few parameters to avoid curve fitting good luck with that Jeff
In fact, there are some other important points, a strategy must be clear to you so that you can apply it on the market not only mechanically (well, there because the level is strong), but also with an understanding of its features and construction in general. You should understand that one strategy cannot work on all types of assets, so most likely you should have more than one. If we talk about stability and profit indicators - you have identified the right figures for yourself, of course they are approximate, but if you reach such a yield, then you will have nothing to worry about, especially if you trade regularly and generally well navigate the market, so as not to miss the most profitable price bursts.