Tactical Trader - Statistical Edge Trading System

SIMPLE 6 POINT EVALUATION TEST

1. Win to loss ratio.

The higher the winning percentage the lower the win/loss ratio has to
be to break even.

The standard for a very good system is to assume a 10% lower winning
average while maintaining a 1.0 greater win/loss ratio over the
breakeven point.(as shown below)
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Accuracy Very Good Actual Breakeven
% Winning System Ratio
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90% 1.25 0.15
85% 1.35 0.20
80% 1.45 0.25
75% 1.55 0.35
70% 1.65 0.45
65% 1.75 0.55
60% 2.00 0.65
55% 2.25 0.75
50% 2.50 1.00
45% 3.00 1.25
40% 3.25 1.50
35% 4.00 2.00
30% 5.00 2.25
25% 6.00 3.00
20% 7.00 4.00
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Win to loss ratio. Formula Below

((amount of win trades/total win)/(amount of lose trades/total lose)) or simply

(average win/ average loss)
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2. Average profit per trade ( expectancy ).
Formula - net profit / number of trades

3. Total Net Profit for time period.

4. Largest drawdown to average drawdown ratio. Like to see a 2 : 1
ratio of largest to average. If any less then the largest would
most likely be much larger.

5. Maximum drawdown.

6. The only other consideration is trade opportunity.
Total Number of trades has a bearing on expectancy. A good
expectancy value can be outweighed by the total number of trades.
For example it may be better to take a smaller expectancy number
value for the sake of increasing the total number of trades
throughout the year. This has to do with your net profit.

Use the best system based on results obtained from using the system
tester.

There is also more information provided on the system tester that you
may consider valuable. THIS IS A SIMPLE 6 POINT TEST TO GET YOU
STARTED.

Having said all that the real value of this system is to be determined
by the user.

This is a multi functional trading system. The value of having multi
systems is in the fact that different trading models or indicators
that will prove to be efficient or not for the particular commodity
or security that you are trading.

Not all systems are effective all the time and for all commodities and
all securities. Simply use this system to your advantage.

This product is not a recommendation to buy or sell, but rather a
guideline to interpreting the specified analysis methods. Past
performance is not indicative of future results. There is a
substantial risk of loss in fututres trading. Futures trading
involves a high degree of leverage, which allows for large returns,
but also large losses. Due to the high degree of risk you should
carefully consider whether commodity trading is appropriate for you.
This information should only be used by investors who are aware of the
risk inherent in futures trading.
For more information visit http://www.tacticaltrader.ca