Picking a Trading System: Formulas Every Trader Should Know
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Are you ever confused by all the numbers reported on system performance? Want to know which numbers are the most important? Lundy Hill breaks downt he most important numbers featured in Futures Truth Magazine. Learn the "internals" of any system.
Drawdown calculations are the most important performance metrics. Lundy looks at different drawdown numbers and explains their importance.
He also discusses the importance of a system's wins and losses, and how to further evaluate them.
Lundy talks about how to utilize the risk of ruin calculation in determining how to pick the most appropriate trading system, in conjunction with the Master Performance Table.