"The 'perfect' trading system - page 105
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I would like to ask you a question. Would a system that moves the market fall into the first category (1. A system that trades the market model)?
Mmmm... no, I guess not. This is probably a separate category, and it's out of our interest. We're not market makers. At least not on forex and in general when trading with DTs.
On the exchange, perhaps, it is worth taking into account, if traded not the 1st echelon (yes even the 1st - in the thin market even with my money can pigeonhole a little (on mamba, of course, not on sandpaper)))), but I would not want to consider this category, unless there is a special interest.
Enough with the verbiage already. Call it a measure of proximity to the ideal, if you like.
Ideality has a measure. If it does not exist according to your definition - it speaks only about narrowness of your ideas.
If you are not familiar with the concepts Ideal gas, Ideal crystal, Ideal conductor, etc. - go and learn, not lecture.
We are far from the guys with "wide souls". Some want perfect stability, others want a perfect system :)
Are you discussing the ideal trading system in a philosophical sense, or in an applied sense?
If still in application, I guess we need to define the criteria for ideality.
Obviously assume that an ideal system must have ideal parameters, or some combination of parameter values that make it ideal.
For example: the system must have some values of profit factor, number of trades, drawdown, % win, etc. Then comes the question: what values and in what ratios?
What is better: a profit factor of 2.5 with 120 trades within 6 years, or a profit factor of 1.7 with 450 trades within the same period? The variations for discussion are endless.
Some thoughts on this can be found here:
http://forex-way.narod.ru/kak_otsenivat_torgovie_sistemi/
Some thoughts on this can be found here:
http://forex-way.narod.ru/kak_otsenivat_torgovie_sistemi/
I did not see any thoughts there. Can you point out one idea?
For example. If you are a small currency speculator rather than an investor, then your ideal system should:
a) trade intraday;
b) make at least 200-250 trades over a period of 6 years;
c) have a profit factor of no less than 2;
d) bring in an average of no less than 20 pips every month;
e) have a drawdown of no more than 300-400 pips;
f) have an expected payoff of no less than 10 pips.
This is the minimum required minimum that a system should have at this combination of parameters.
Other variants of parameter values are possible but they must be interrelated. The variants are the subject of discussion.
We're a long way from the 'big-hearted' guys. Some people want perfect stability, others want a perfect system :)
Perfect stability, by the way, the suckers are not interested :)))
For example. If you are a small currency speculator rather than an investor, then your ideal system should:
a) trade intraday;
b) make at least 200-250 trades over a period of 6 years;
c) have a profit factor of no less than 2;
d) bring in an average of no less than 20 pips every month;
e) have a drawdown of no more than 300-400 pips;
f) have an expected payoff of no less than 10 pips.
This is the minimum required for the system to have this combination of parameters.
Other variants of parameter values are possible, but they must be interrelated. Variants are the subject of discussion.
It is not a system, it is a rubbish. Sorry, but 20 points a month with 300-400 points drawdown is a mare's delusion.
And we should also take into account expected payoff of 10 points!
In essence it is a pipsipsitter with outlasting losses - i.e. one day walrus. But taking into account 200-250 trades at 6 years for a pipser, it is nothing.
In short, this is not the minimum for the system, but the standard for draining.
....
have a profit factor of at least 2;
......Profit factor is complete nonsense.
The Profit Factor is complete nonsense.
>> oh, come on.
...
Also take into account the expectation of 10 p!
In essence it is a pipser with outlasting losses - i.e. once a walrus is staked. But given 200-250 trades over a period of 6 years for a pipser, it's nothing at all....
...
A pipsitter has an expectation of winning of 3...4.