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

[m4a1]

well this is just a positive way to spin what really goes on in the corporate world.

a manager who doesn't know how to do the work himself (read political appointee of the higher level manager) motivates the worker bees by misleading them. the manager takes 90% of the credit for delegating reponsibilities to other people. he keeps the worker bees motivated by getting them to compete with each other to see who can whork the hardest and impress him the most.

when one of the worker bees finally realizes the manager's game, the manager replaces him with the hundreds of young lambs who are eager to have the "opportunity" to contribute to the firm

Quote from KRSNA:

So can this apply to trading? Are systems just ideas?

"These are all the 'rules' I am aware of. The biggest error most folk make when going into business for themselves is to believe single-mindedly in their 'idea'. Ideas are literally ten-a-penny. Execution is the real key and to achieve it requires talent. But Not Necessarily Your Own Talent . I have employed hundreds and hundreds of people more talented than I am in my business career. If you can persuade the talent to work for you, you are virtually home and dry - as long as you give such individuals their head (delegate!) their due (pay them and praise them!) and refrain from interfering too much (the hardest thing of all!) Making money is a knack, not rocket science. The three key qualities required are desire, stamina and perseverance."

Felix Dennis - started with nothing and built $500 million. Now plants trees and writes poetry.

 

[Trader666]

Quote from Raystonn:

Honestly, one of my better systems (3.80 profit factor, 75.61% of trades profitable, 0.86 Avg Win:Avg Loss ratio

Um... that's a PF of 2.67

 

[Raystonn]

No, it's not. You are assuming a constant position size per trade. The Avg Win:Avg Loss ratio is per contract.

-Raystonn

 

[Trader666]

Quote from Raystonn:

No, it's not. You are assuming a constant position size per trade. The Avg Win:Avg Loss ratio is per contract.

-Raystonn

No, I'm going by what you posted. PF can be calculated from % wins and Avg Win:Avg Loss ratio. Position size is already in those stats.

 

[fletch2]

Quote from Trader666:

No, I'm going by what you posted. PF can be calculated from % wins and Avg Win:Avg Loss ratio. Position size is already in those stats.

He said avg win:avg loss was stated per contract. So no, it isn't.

Fletch

 

[Trader666]

Quote from fletch2:

He said avg win:avg loss was stated per contract. So no, it isn't.

Fletch

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.

 

[swtrader]

Quote from horribilicus:

Attached are the perf stats of a system called WinkB. It has 8700 trades and a Profit Factor of 2.13. But honestly, I prefer the other, previously attached system ("Sled") quite a lot more, even with its lower Profit Factor.

Again the file is of type .mht which is MIME encoded HTML. It opens in your web browser (MS Internet Explorer, Firefox, Opera, etc.)

I took a look at that site, but I couldnt see sled or winkb anywhere

how do you go about exploring/implementing either of these systems?

 

[Raystonn]

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.

If the winning trades averaged the same number of contracts as the losing trades, then you could figure the profit factor from the win:loss ratio. As it stands, you cannot. That is why I included both statistics.

-Raystonn

 

[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.

 

[Trader666]

Quote from Raystonn:

If the winning trades averaged the same number of contracts as the losing trades, then you could figure the profit factor from the win:loss ratio. As it stands, you cannot. That is why I included both statistics.-Raystonn

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.