Learning profitable automated trading

Originally Posted by meanreversion

For some reason I'm not getting email notification of thread replies ... going back to something I posted earlier, simply dividing total return by number of years overstates the CAGR.

E.g. let's say you made 200 pct in 10 years, that is NOT the same as 20 pct CAGR, it's more like 12 pct/year (1.12^10 approx equals +200 pct profit).

Thus it is accurate in this example to say the system makes 12 pct a year, not 20 pct a year. This is a common error I see frequently.

Originally Posted by N Rothschild

1500$ profit over 958 trades? are you actually for real?

Originally Posted by oildaytrader

The lot sizes if increased to $10 per pip would make it $15,000 , or $100 per pip to $150k.
Trading $1 per point is no reflection on the system, it is just me increasing stakes slowly.

Originally Posted by meanreversion

This is the advantage of a mechanical system which you truly believe has statisical edge ... you're able to trade through the drawdown. Typically, a system with a CAGR/Max DD ratio of over 1 is considered good (e.g. over 10 years it returns 30 pct a year, with max drawdown 30 pct).

Originally Posted by N Rothschild

well it managed to draw down 30% on $1 a point, some how i dont think there would be much of your account left if those losing trades were 10 times the size.

i think what makes this all so funny is, you clearly cant trade and have no clue how to, so you design these pathetic systems, which return about as much as a savings account!

Originally Posted by oildaytrader

Mr 14

with larger lot sizes you have bigger account size i.e money.