How is the expected payoff calculated? - page 3

New comment
 
Integer:

It's the same shit, only worse. The main and most obvious performance indicators of the system are profitability in % per unit time and drawdown in $ and %.

The purpose of mo in pips, is so that the margin of error of real order execution is not critical. I.e. the adequacy of tests to reality. And what is the point in dollars anyway?
 
Integer:
Same shit, only worse.

Dimitri, why so angry? I think Vladimir is right. You could also measure it in spreads.

 
TheXpert:

You can also measure in spreads.


In floating spreads ?
 
In the Russian Federation, by law, everything must be measured in rubles! :))
 
paukas:
In the Russian Federation, by law, everything must be measured in rubles! :))

in half a litre)))
 
bogati: What is the difference if I count in terms of money rather than pips?

In pips, you need it as a trader to understand how much your average trade differs from the spread.

Most systems in testing show losses around the spread per trade. This is the expectation of almost any "typical plum" system, "minus the spread".

If you need a profitable system, then your average trade should be significantly positive, i.e. at least compensate for this "minus spread" with some margin. It is considered that if a system's expected payoff is not less than 1-2 spreads, it may be considered as profitable.

Now, after the variable spread has been implemented in most brokerage companies, the situation is more complicated: you should have an idea about the average spread at opening your trades. And try to ensure that the expectation of the system is at least larger than this average spread, better several times larger.

 
Let's not fantasise, imagine what you give for management, what criteria would you use to choose a manager?
 
TheXpert:

Is there a story?

____

ah, screw it.

There's
 
TheXpert:

Is there a story?

____

Ah, screw it.


There's no story, it's all hypothetical.

Imagine an ad like this:

"TralaVal & Co Mutual Fund - Our profitability is 69 points per quarter. Isn't that funny?

 
Integer:


There's no story, it's all hypothetical.

Imagine an advertisement like this:

"TralaVal & Co Mutual Fund - Our profitability is 69 points per quarter. Isn't that a rush?

"Ofweli & Co Offshore Mutual Fund - Our MO $100 per trade.

Better?

I'll go, they say they give away 25 pips a day for free, for some reason not dollars.

1234567
New comment