Help with actually doing trading system calculations.

mirinquads
18
mirinquads  

So Im quite new at this stage to systems trading, and I have been reading a lot.

But I'm actually wondering I calculate the more basic stuff. I have a bunch of R-multiples(Im using the R system), and know how to calculate the average and variability and so on.


But how about maximum drawdown and all the variables I need to actually know what I can expect of my system? I feel like I always hear about back tesing and this and that, but I need the very basics to get started

Is there a good place for this? 

Any help is very appreciated.

mfx123
231
mfx123  
Start with understanding how MT4/MT5 backtest work and the meaning of backtest results.
mirinquads
18
mirinquads  
Very helpful, but they dont go into max/min drawdowns, profitfactors and so on though - How did you learn about these terms and how to use them to optimize your system?
mfx123
231
mfx123  
How to read this report from an expert advisor test.
How to read this report from an expert advisor test.
  • 2012.06.11
  • www.mql5.com
Hi i recently bought this EA. Ive traded with it for 3 weeks and the live performance is consistent with the below strategy tester report...
mirinquads
18
mirinquads  
Not bad, that definitly helps a lot.

Theres not guide that straight up goes through how to do these calculations?
mirinquads
18
mirinquads  
Anyone?
Fernando Carreiro
5191
Fernando Carreiro  
mirinquads: But I'm actually wondering I calculate the more basic stuff. I have a bunch of R-multiples(Im using the R system), and know how to calculate the average and variability and so on.But how about maximum drawdown and all the variables I need to actually know what I can expect of my system? I feel like I always hear about back tesing and this and that, but I need the very basics to get started

Do a Internet Search (Google, Bing, etc.). There are many sites describing the metrics and the respective calculations. Here are two examples after a quick Google search: