Hello, was wondering how people go about evaluating the success of their entry signals any ideas or prior posts welcome. I am also trying to create a metric my self which is below
If the trade is exited within the first 10-15days it is counted as a looser
Then look at remaining trades (winning trades) and calculate the max favorobale excursion.
Then basically do a ratio or maxfavourableexcursion * winningtrades/ Stopouttrades* exit price.
I don't seem to be able to figure out how to distinguish between the loosing and winning trades if someone could help it would be greatly appreciated.
Tx
Looking at path of trade
Chuck LeBeau's & David Lucas's book (ref) suggests one way to evaluate the goodness of trade entries, apart from exits, on pp. 171-172. Personally I don't find it especially valuable, because for me it replaces one question
Fire up your favorite search engine and hunt for the Trader's Roundtable message which contains this line:
- Which of these eight different entry methods is best?
- What number-of-days shall I use to evaluate my LeBeau and Lucas test results?
Fire up your favorite search engine and hunt for the Trader's Roundtable message which contains this line:
The thread which contains that post, may give you some more ideas.TENTATIVE CONCLUSION: Textbook entry signals are non-negligible contributors towards system overall profits. Even with random exits, good entry signals can make money.
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- Roundtable Knight
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I am not familiar with the method from LeBeau's book but you could also use the e-ratio discussed by Curtis Faith in Way of the Turtle on page 65.
You might also have the same issue as sluggo highlights as the e-ratio is calculated for a specific day - although you can calculate/chart it for a range of days.
If you have access to the Blox marketplace, you can search there, I believe there is an (old?) implementation of if in TB.
You might also have the same issue as sluggo highlights as the e-ratio is calculated for a specific day - although you can calculate/chart it for a range of days.
If you have access to the Blox marketplace, you can search there, I believe there is an (old?) implementation of if in TB.
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- Roundtable Knight
- Posts: 123
- Joined: Tue Nov 03, 2009 8:49 am
- Location: London
- Contact: