[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: Trading System Benchmarks



PureBytes Links

Trading Reference Links

>A few weeks ago I asked what criteria could be applied to a trading system 
>in judging if it was a great system or a POS. I have attached my thoughts 
>(hopefully it gets through). Any comments?

In my opinion I have to agree with Van K. Tharp, author of
Trade Your Way To Financial Freedom.  A great system will have
a high score defined as expectation times opportunity factor.
Expectation is basically the average win divided by the average
loss.  Opportunity factor is the number of times the system lets you
trade within a predefined time period.

-- 
  ,|___    Alex Matulich -- alex@xxxxxxxxxxxxxx
 // +__>   Director of Research and Development
 //  \ 
 //___)    Unicorn Research Corporation -- http://unicorn.us.com