Why most of the system metrics are useless numbers People ask me what my MDD is, what my Sharpe ratio is etc. All these metrics are nonsense! I'll give the proof of that below. The only meaningful metric is what the end result is, ie. the P/L at the end. Imagine you have a long position and it's down by 10%, ie. MDD is -10%. Most people will say that's a too big MDD... You could have done better if you apply this trick: If it is say 5% down then double your position --> net effect is your DD is now only half, ie. -2.5%, so you have a cushion... By repeatedly using this method you can set and control the MDD you want. So, we see MDD can be tricked out. In an old posting I showed that also Sharpe ratio is useless as it can simply be tricked out. Same goes with the Win/Loss ratio etc. All nonsense. So, dear managers and funders, forget all these silly buzzwords like MDD, Sharpe ratio, W/L ratio etc. etc. They tell nothing about real trading. Trading is strategy: the same things a general in a war does, ie. applying many strategic decisions at their right times... Trading is dynamic, not static. What counts is the overall strategy one uses and all the many single decisions on the way for winning the battle, and of course the end result, not the result in-between.