My attempt to earn a funded account with Earn2Trade

virtusa said:
You apparently are the person who can help me with a very minor problem that I have.
I daytrade and take a few trades per day. I have big differences in returns per trade as I use a big leverage and compound till a certain level.

My system works to my standards very good so I don't need really Sharpe or Sortino.
I tried to calculate, just for fun and out of curiosity, Sharpe and noticed that the ratio of my system improved if I cut many trades in pieces, so that the average return per trade was less volatile. This decreased my net profits as I had to pay more commission and slippage.

So to me Sharpe sucks because of the fact that making less profits increases your Sharpe. How can a good indicator give thumbs up if the return goes down and the number of trades goes up?
Or did I use a wrong formula?

I tried Sortion and with 112 trades he gave this result:

second thought, I will not post the result...

I think I have a good system, but Sortino looks to me a bit too optimistic...
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I saw the result.

Looks really good. Why are you so afraid to post results and reveal the broker who funded you :)
 
Lucas_Paul said:
I saw the result.

Looks really good. Why are you so afraid to post results and reveal the broker who funded you :)
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Want to keep my privacy. Had bad experiences with ET in past.
Also a lot of trolls. Especially if you are better than the average ET'er, which is not difficult at beat at all.
 
EOD JULY 21

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virtusa said:
I tried to calculate, just for fun and out of curiosity, Sharpe and noticed that the ratio of my system improved if I cut many trades in pieces, so that the average return per trade was less volatile. This decreased my net profits as I had to pay more commission and slippage.

So to me Sharpe sucks because of the fact that making less profits increases your Sharpe. How can a good indicator give thumbs up if the return goes down and the number of trades goes up?
..
More...

sorry, i forgot to reply to you.

You're not creating any new value by breaking down the SAME strategy.
So, what you did here is you just exchanged total return for sharpe. There is no new value. It's the catch 22 of markets (strategies).

Only if there's new parameters, it's possible to generate new value through optimization.

Same thing in any other business. Markets are no different. Imo.

That's why i said it's the sharpe AND total return. Not just sharpe (well, Sortino, really)
 
Lucas_Paul said:
sorry, i forgot to reply to you.

You're not creating any new value by breaking down the SAME strategy.
So, what you did here is you just exchanged total return for sharpe. There is no new value. It's the catch 22 of markets (strategies).

Only if there's new parameters, it's possible to generate new value through optimization.

Same thing in any other business. Markets are no different. Imo.

That's why i said it's the sharpe AND total return. Not just sharpe (well, Sortino, really)
More...

I see that Sharpe ratio is complete off, while Sortino gives more or less the real situation. I also read somewhere that daytraders should use Sortino and not Sharpe. He explained that the high volatility of the returns have a negative impact on Sharpe.
 
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