New article: Automated Trading Championship 2008 - Zero Returns Diagram
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On the website of the Automated Trading Championship 2008, an article by Rashid Umarov "Zero Returns Diagram " has been published. There is a lot of various approaches to estimation of trading strategy efficiency. You can consider both the operations of one individual Expert Advisor and the trading results of a group of EAs. Rashid Umarov studied the approach proposed by Mikhail Korolyuk in his article "Be In-Phase" and used his method to analyze the trading results of the Participants of Championships 2006 and 2007.
The trading strategy estimation methods proposed in Mikhail Korolyuk’s article “Be In-Phase” is certainly interesting and informative. Although we have received more evidence that there is no simple formula of creating a “holy grail” in trading, we can see that profitable strategies are easily identified using zero returns curve.
Moreover, we can assume with a certain degree of confidence how the profits were obtained when trading with one or another strategy. For this, it will suffice to see in what chart area the strategy is located when analyzed according to the above methods. A strategy may produce frequent profits, but the average profit will be quite small as compared to the average loss. A strategy may produce rare winning trades, but then the average profit must significantly exceed the average loss. Or it can be a strategy ranging somewhere between the two above.
The article was published on the website of Automated Trading Championship 2008 in the News section.
Sponsors of the Automated Trading Championship 2008 are FXCM (Forex Capital Markets LLC), Interbank FX LLC (IBFX), FXDD and the TRADERS’ magazine. The organizer of the Championship is MetaQuotes Software Corp.