Equity Curve Analysis by Vladimir Stepnov
ARTICLE SYNOPSIS ...Equity Curve Analysis by Vladimir Stepnov
What can you expect from your trading system?
he random nature of the
markets can alter your profit
expectations, which is why you
must determine how your
system will perform in any type
of market. When you design a
system, the main parameters that characterize
its performance are the percentage of winners
(hereafter referred to as p) and the win/loss
ratio (hereafter referred to as alpha, ?). The
value of p is calculated by dividing the
number of winning trades by the total number
of trades during the test period, and ? is the
ratio of average winni...
AUTHOR: Vladimir StepnovDATE: APR 2002SUBJECT: Trading System