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I think you might be looking at total net profit over all contracts.
Lets say a mediocre trader is trading 10 lots on the ES, then 1 trade (10 lots) for 4 ticks is 40 ticks, and could be 100% of the average daily range for instance.
Or are you saying that you think based on a 1-lot you should be capturing 100% of ADR each day (over multiple trades)?
Put another way, if we assume 50% win ratio and 2:1 reward-to-risk, are there 20 setups a day on the ES where you can risk 4 ticks to make 8? If you are right 50% of the time with 0.5R, you will have 80 ticks profit (forgetting commission, which will be a hefty price). Your losing trades, 50% of all trades, would have lost you 40 ticks (again, plus c). Leaving you with 40 ticks net on the day, but of course with 20 trades your C will be hefty percentage of that figure.
So how would you measure your efficiency in terms of market movement?
I have something I track called "benchmark" which is basically where I list the absolute best case scenario for my trade setup in terms of total possible ticks. This is not to be confused with in-trade MFE. This is a hypothetical best case scenario, saying I captured 100% of the move based on my methodology.
I use that to measure my actual performance for an individual trade against the benchmark performance.
But I still find it useful to look at my overall daily performance and compare it to the overall daily volatility.
BTW, here is the most recent example from someone else. This is from Matt Davio who posted this in his thread a few minutes after I had created this poll.
Just to provide another perspective or reference.
I know @tigertrader has also made similar comments to me, but I cannot recall if they were in PM or public posts and no clue where they reside so not easy to go find and quote.
OK so we can delete the word "objective" from the poll and thread title, so the question is simply -- what are you actually doing vs what do you want to do.
i am not able to vote because i expect to be a net loser on the day, this is no joke and probably a more realistic outcome than any of the other choices. i never would lower myself to look at performance on a daily basis yet i do expect i will out perform any expected profitability on a yearly basis. ~m
the range of the day does not take into account all the movement in a day. a market may open and go directly up to close 20 points higher on the day. the next day may open and trade 5 points up and down every hour and close where it opened - that day to me had a 30+ point range.
based on this premise i would expect in a years time that i would capture well over 4500% of the cumulative daily ranges as described in the poll. however on a daily basis i always expect to be negative, with respect.
Please look at post #21, and give a real world example including win rate, R and number of trades per day, so I can better understand. Please remember this is based on 1-lot per, size has nothing to do with it.