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No, in net dollars the W/L ratio is around 90%, in trades it's 50%. You could have a system that won 90% of all trades and still lost money at the end of the year, if your W/L ratio in DOLLARS is less than 50%.

Assuming that at the end of the year your account in total has twice as much as you started with then if you had 2 losses in a row or 6 or had 4 draw downs of 7% each or of one of 28% is secondary. What are your criteria for a good trading system? It would be great to trade a system that...

Quote from Mathemagician: None of those things matter on their own. M If you can double your total capital every year, not much else matters. One can muse about Sorentino ratios or percent of MFE captured but if you're playing the game for money then net profit over the long term...

Thanks for pointing that out. What I'm focused on is W/L Ratio in dollars only. The number of trades is only secondary. If you had 5 winning trades that made $1000 each and 5 loosing trades that lost $100 each I'd say that's good.....or a W/L ratio of around 90%

Question: What do you consider a good trading system in terms of two, among many, measures: 1) Win/Loss Ratio in dollars 2) Annual return on total account capital For example: if a system won $7,000 while loosing $3,000 it would have a 70% Win/Loss ratio (7/(3+7) = 0.7 If it...

Iraq had to abide by certain requirements - such as allowing UN weapons inspectors free access to search for WMD Right... so let's invade North Korea which did the same thing or better yet Israel, which has never let anyone inspect their nuclear bomb program.

Are you sure you want Canada's health system. Just last week ambulance drivers called for an inquiry into why 3 people died during the week ---- I'd take that in an instant to the US system which is in the "business of medicine" as opposed to the "practice of medicine". Hell 3,000 people...

Don't worry about "Did we learn anything from Chamberlain?" Study Viet Nam instead. We could have pulled out in 1968 and they would still be making our athletic shoes for $1.15 per hour. The British tried to run Iraq in the 1920's and got their butt kicked out. They tried to run...

Ahh, you forget the 45 million uninsured in this country who would pave the way for Canadian forces by blowing up bridges and disrupting communications. Add to that millons of injured vets who got screwed by the VA on benefits to save Rumsfield a few bucks. Hell, Canada wouldn't have to...

Funny my mechanic is happy to state that he isn't the cheapest and tell me who is. I get to make the decison between quality and cost

Many in this country wish Canada could find a reason to invade and occupy the USA, capture the senior executives running the health insurance companies, for profit hospital, the American Medical Association and try them for crimes against humanity for all the Americans who have died from our...

Also Quantitive Finance on Yahoo if you want to get into some very specialize approaches. Most active forums are dominated by chartists and indicator traders as most people prefer simple rule based trading to the complexities of soft computing

You ask everyone if you want to find the best car to drive

For specific technology try Yahoo groups like ATS2 for automated trade strategy or Neural Networks and Knowledge Discovery for advanced predictive analytics and soft computing

kubilai: Thanks for the encouragement, Jerry. *** - You're welcome. *** I can certainly see such returns to be possible, though the capacity for such systems would be fairly low, correct? Strong market inefficiencies must be small/niche/limited in scope... *** - No, I...

kubilai, With a really good set of models a return on total account in the neighborhood of 200 to 300% annually is being done in futures trading. Jerry

Bill, There is an even simpler way to resolve the opinions on Optimization. It's called OOS or Out of Sample testing. To do this: 1) take a set of market data and create the best system you can, with 2 rules or 20 rules. Make it simple, make it complex, whatever. 2) Freeze the rules...

CPTrader, You said: "It is commonly agreed that the measures of a robust trading system are: 1. Common sense and valid underlying logic. 2. Identical parameters, rules for all markets 3. Consistent profitable performance across multiple markets in multiple market complexes 4...

kubilai [B]Hi Jerry, Thanks for chiming in, you have a lot more experience than I do here. My idea is pretty simple. Given a set of trades, I try to predict the profit for each trade using a set of input values such as market cap of the stock, liquidity, etc. The predicted profit is a...