here's an example showing the QE Short system - the charts on
the top show the version that would have caught a short last week
on that bounce, very nice trade obviously. However in the past I
didn't like some of those past trades, like the one I show after
the 2018 bottom, which is that same system but shown on the top
left. The profit factor on the top system is 8 with about 81%
winning trades, very good stats
the two charts on the bottom is the version of that system I
have in use. It obviously didn't catch the short last week, too
bad. It didn't get caught in that bad trade in early 2019 like the
top one. The profit factor on the bottom one is 11.7 with 86.5%
winning trades so slightly better stats - HOWEVER it makes less
total profit than the one above, as it does fewer trades: 55 trades
vs 71 from the top one.
That's a good example, in the past I generally picked the
systems with the highs profit factors and the least draw down over
total profit made. Maybe the one at the top is the one we should be
using in this kind of market? who knows, but otherwise hopefully my
example here illustrates how there are many variables here. I have
many variation's of the systems and at the end of the day I have to
choose one of them, good or bad, many times the other versions I
didn't pick will catch nice trades that the ones I choose at the
time miss
here's an example showing the
No system entries yet
Posted by matt on 8th of Mar 2022 at 07:06 pm
here's an example showing the QE Short system - the charts on the top show the version that would have caught a short last week on that bounce, very nice trade obviously. However in the past I didn't like some of those past trades, like the one I show after the 2018 bottom, which is that same system but shown on the top left. The profit factor on the top system is 8 with about 81% winning trades, very good stats
the two charts on the bottom is the version of that system I have in use. It obviously didn't catch the short last week, too bad. It didn't get caught in that bad trade in early 2019 like the top one. The profit factor on the bottom one is 11.7 with 86.5% winning trades so slightly better stats - HOWEVER it makes less total profit than the one above, as it does fewer trades: 55 trades vs 71 from the top one.
That's a good example, in the past I generally picked the systems with the highs profit factors and the least draw down over total profit made. Maybe the one at the top is the one we should be using in this kind of market? who knows, but otherwise hopefully my example here illustrates how there are many variables here. I have many variation's of the systems and at the end of the day I have to choose one of them, good or bad, many times the other versions I didn't pick will catch nice trades that the ones I choose at the time miss
hope that helps
Thanks Matt - that makes
Posted by piclez on 9th of Mar 2022 at 12:06 pm
Thanks Matt - that makes sense and I know its not easy to play with those system settings and you have to pick up the better p.f.