Profit v Drawdown. How do you choose?

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Greetings All,


If I may, Id like to start a discussion on how and why you choose which optimized setting to use after results.

In particular, Profit v Drawdown.  Or do you use Profit factor?

I have attached two results as an example. Which of the two would you choose and why?

* If there is already a discussion on this, please post a link, I searched but couldnt find anything.  Thx and GT

Files:
P v D.jpg  33 kb
 
MPFX1:


That will depend on your style of trading, your balance, and your "nerve". ie tolerance to being in drawdown.

I personally err slightly on the side of profit, as my trading style takes advantage of trickling profits and may even depend on that when my account is in drawdown -- to then recover from that drawdown period.

i would choose the top one for the points mentioned previously. And the number of trades is higher, so when the strategy is winning, you will get more profit which allows the account to tolerate a bigger drawdown period if it happens in the future.

However, both are good options imo.

But fyi those trades are not big enuf to be reliable. for testing results to be reliable, imo, i need 1000 trades.
 
Michael Charles Schefe #:

That will depend on your style of trading, your balance, and your "nerve". ie tolerance to being in drawdown.

I personally err slightly on the side of profit, as my trading style takes advantage of trickling profits and may even depend on that when my account is in drawdown -- to then recover from that drawdown period.

i would choose the top one for the points mentioned previously. And the number of trades is higher, so when the strategy is winning, you will get more profit which allows me to have a bigger drawdown period if it happens in the future.

Thx for reply. I am in your camp too with taking the higher profit. Like you point about larger profits allowing for drawdown.. 

 

1. I prefer to decide after seeing the balance/equity curve.

2. Better to watch every trade that is taken.

3. It all depends on what the strategy is about. 

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