Anybody got a system with Profit Factor 2.0+ over 2000 trades?

Trader666 · Sep 9, 2006

Quote from horribilicus:

Curtis Faith and Chuck Branscomb came up with a fairly slick way to extend "Profit Factor" into the domain of non-constant position sizes. Rather than take the ratio of (Total_Dollars_Won) / (Total_Dollars_Lost), they invented "Percent Profit Factor" which takes the ratio of (Total_Percent_of_Account_Won) / (Total_Percent_of_Account_Lost). The attached image, swiped off Curtis's website, shows the math more precisely.

PF can already be used, as is, in "the domain of non-constant position sizes" as long as it's calculated correctly. PF will change for the same system with and without position sizing but given what it measures (how many $ your system has made for each $ lost) , it should. Faith's argument for normalizing it is to remove "the skew of recent history dominating the test." But I think it's a bell/whistle to help him sell Veritrader and personally prefer the original PF, in conjunction with other metrics.

fletch2 · Sep 9, 2006

Quote from Trader666:

You need to re-do 2nd grade reading and you both need to re-do 5th grade math. I'd explain it but you don't have the intellect to grasp it. Good luck and please put me on iggy.

Well I have a PhD in math, so your comment rings a little hollow. Perhaps you are using different definitions for your words. And getting upset about something like this is something you should have grown out of about the timeframes you mention.

Fletch

JimmyJam · Sep 10, 2006

Quote from Trader666:

No...the reality is that you posted a bunch of bogus stats that you don't understand and got caught. And now you're trying to BS your way out of it so it's pointless trying to reason with you.

Actually as Raystonn and Fletch2 have both already made mention (and other experienced traders have discoverd for themselves) the key to increasing your profit factor is not tweaking/massaging your entry/exit signals, but rather by using non-constant position sizing.

You might think they are BSing, but they are actually doing the readers a service by even bringing the concept to their attention.

Best Regards,

JJ

fletch2 · Sep 10, 2006

No, but I've got an air compressor, if you want to give me your BMW, I can keep your tires full pressure, and we'll share it 50/50. Deal?

Fletch

OddTrader · Sep 10, 2006

Quote from OddTrader:

Like a Genius.

The following is for automated trading (on ET, of course):

I don't have a mechanical system of PF 8.0+ Yet.

But I do know a way how to multiply the total profits by 20 times and at the same time to reduce DD by 90% for all systems with PF 8.0+.

(Please don't ask me how I can carry out the above testing and development for conclusions.)

My secret is a secret. Therefore I need you to trust me and send me your systems so that both you and I can share our secrets, based on the condition that although I won't send you mine, sorry.

Thank you for listening.

JimmyJam · Sep 10, 2006

Quote from fletch2:

No, but I've got an air compressor, if you want to give me your BMW, I can keep your tires full pressure, and we'll share it 50/50. Deal?

Fletch

hahahahha

Raystonn · Sep 10, 2006

Honestly, I don't know what Trader666 is getting into a huff about. It's pretty simple math. If he chooses to believe any number I give is untrue, so be it. I'm not here to sell my systems. Let him believe what he wants.

However, I would recommend he examine the reasons for his hostile behavior. He may discover something about himself that could help him in his journey to profitability.

-Raystonn

Trader666 · Sep 10, 2006

Quote from fletch2:

Well I have a PhD in math

Now I also know you're a liar.

Trader666 · Sep 10, 2006

Quote from Raystonn:

Honestly, I don't know what Trader666 is getting into a huff about. It's pretty simple math. If he chooses to believe any number I give is untrue, so be it. I'm not here to sell my systems. Let him believe what he wants.

However, I would recommend he examine the reasons for his hostile behavior. He may discover something about himself that could help him in his journey to profitability.

-Raystonn

ROTFLMAO! Maybe you should examine why you need to post bogus numbers to message boards on the internet.

OddTrader · Sep 10, 2006

Quote from JimmyJam:

Actually as Raystonn and Fletch2 have both already made mention (and other experienced traders have discoverd for themselves) the key to increasing your profit factor is not tweaking/massaging your entry/exit signals, but rather by using non-constant position sizing.

I agree 100%, as the best position sizing method is knowing in advance betting 0% on all losing trades/ signals and keeping 100% on all winning ones. Holy Grail!