Which trading system would you prefer and why?

[Dispassionate]

Note:

System A yields 50%

System B yields 44%

 

[Trader333]

There is insufficient information to make a decision as you need data on profit factor or average return against risk for each system.


Paul

 

[Tuffty]

Yep, not enough info. I like to protect the downside first, then look at the possible returns.

 

[TWI]

Both of them will do, who cares if you have positive expectancy just lay on the volume and soon you can buy happiness.

 

[TheBramble]

Both of them will do, who cares if you have positive expectancy just lay on the volume and soon you can buy happiness.

Well if yield is "annual return on invested capital" then it might be attractive, if there was no drawdown, i./e. a dead cert.

But even the higher of these two rates is unlikely to be of interest to active traders (day or otherwise) on these boards.

So, I'm sorry Dispassionate, BAT Sonar V2.1 isn't going to get me, or many others, very interested.

(How much did he charge you for it? )

 

[Tuffty]

I've just seen there is more info in the poll question.

System A has a profit factor of 1.7 while system B's is 2.1. If they both have the same number of trades per a given time period and trade the same instrument then B is better. It will give lesser draw down levels so trade sizing can be geared up for the same amount of DD risk (but this will lead to greater market exposure risk). (NB: This conclusion may not hold true if system B's spread of returns from each trade are much more variable than system A's)

I can't deduce anything from the yield figures as their results will be mainly due to the money manamgent applied to the individual trades.