What are the main things you look for when you are looking at traders or strategy to invest with or copy from?
I pay a lot of attention to the maximum drawdown to average gain ratio.
Things like grid systems for example tend to have pretty low monthly gains in relation to their maximum drawdown (or they are new systems). When things are working its great but its very vulnerable to strong one sided moves leading to large equity drawdown.
A drawdown to average gain ratio of 2:1 I consider good and anything better very good. I dont think I have ever seen a 1:1 over a period of a couple years.
I pay a lot of attention to the maximum drawdown to average gain ratio.
Things like grid systems for example tend to have pretty low monthly gains in relation to their maximum drawdown (or they are new systems). When things are working its great but its very vulnerable to strong one sided moves leading to large equity drawdown.
A drawdown to average gain ratio of 2:1 I consider good and anything better very good. I dont think I have ever seen a 1:1 over a period of a couple years.
