StockFetcher Forums · Backtesting Support · Expainations of headings requested<< >>Post Follow-up
glider
59 posts
msg #36467
Ignore glider
6/25/2005 7:09:31 PM

I would really, REALLY like to see detailed explainations of the headings with some practical examples.
What are Win/Loss Ratio, Risk/Reward, ROI etc. and how are they calculated?
Is drawdown the opposite to maximum profit?
I know many others have requested this also.

Thanks


glider
59 posts
msg #38563
Ignore glider
10/25/2005 2:19:23 AM

Repeat request


craigk
24 posts
msg #39211
Ignore craigk
11/30/2005 4:17:08 AM

I love backtesting...I think...
I think the most important is "average net change for completed trades"

the Win/Loss is any trade that has a possitive gain divided by any stock that is a loss. ie 5/4 = 1.25 is 5 trades gaining / 4 trades losses.

ROI is "Return on Investment" an yearly estimate using this system. It is a guess. I have the 2 year plan and it is not accurate as I can do a year backtest and it is off. But, it is proportional so it is a good reference. The higher the better.(unless you need some tax write-offs)

Now I am just guessing...
Risk/Reward goes up when you complete more possive (winning) trades. Say you have a profit stop at 5% then move it to 3%. More positive trades completed the higher the Risk/Reward Ratio.

Drawdown, I do not pay mind to this. Probibly another estimate on how much a almost fully invested trading account would drawdown.

Do not understand Maximum profit, maybe the averange of all the wining trades. No, I'm clueless.
I would like more information too - maybe it is a trade secret of the stockfetcher Company,

Anyway, That is what Craig Thinks

Here is one that I just though of...
Americas Christmas celibration percent is 28.5%.

Christmas is a "Mass for Christ" So 28.5% go to a Service to celibrate Christmas. So 71.5% do not celibrate Christmas. Now what is the Risk/Reward ratio, ROI and Win/Lost for that hour of time?



Koronbock
201 posts
msg #39219
Ignore Koronbock
11/30/2005 10:27:18 AM

You do not need to guess. All the definitions are right under your eye, in this forum. Look under the thread "definitions".


StockFetcher Forums · Backtesting Support · Expainations of headings requested<< >>Post Follow-up

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