How to Evaluate Trading System Performance?

The best statistic you can find is a graph of the equity curve itself. That will tell you how the fund behaves in certain market conditions. Of course, it's not the perfect statistic (doesn't exist), and there are no guarantees of future returns. However, the equity curve tells you more info than cumulative annual return, hit rate, and profit factor ever will.

Zulu Trade is full of SP's with nice looking equity curve. Unfortunately the Devil is in the details.
 
The direct evaluation of the trading system performance according to me would be by the number of pips that can be consistently produced by our trading system.
 
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