Hey, I have a quick question. I'm backtesting something and I'm getting a 55% winning percentage with wins 4x the size of losses. Is this a satisfatory setup? Or should the win% be higher?
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DislikedHey, I have a quick question. I'm backtesting something and I'm getting a 55% winning percentage with wins 4x the size of losses. Is this a satisfatory setup? Or should the win% be higher?Ignored
Dislikedwin % is such a small factor in determining overall quality of a system(you can have a win% of <50 and still have a great system.Ignored
DislikedI ABSOLUTELY disagree. The psychological damage of any system in which most trades end up being losers is utterly devastating. Whoever says otherwise hasn't traded real money.
HOWEVER, if it's an automated system and you can indeed sustain a 4:1 risk/reward ratio, then I'd say go for it.Ignored
DislikedIf you are speaking for yourself then that is fine and understandable. But everyone has different psychological hang ups, and mine certainly has nothing to do with win %. And yes I trade real money
Anyway what I was getting At was expectancy, but people tend to want to overlook important things anyway.
Best,
MikeIgnored