According to MQL5 documentation and Metatrader5's help. Recovery factor mean value reflects the riskiness of the strategy - the amount of
money risked by the Expert Advisor to make the profit it obtained. It is
calculated as the ratio of a profit obtained to the maximal drawdown;
Thus, the greater the value of the recovery factor, the better.
i develop some strategies
for those which is profitable, meaning profit factor > 1.0, I get recovery factor ranging for 0.x to maybe 4.x
so it is a little confusing how exactly does recovery factor values stand out
It is a kind of a description of a strategy.
When you compare strategies, it can be used to see difference between strategies.
When you develop a strategy, it is irrelevant.
I totally agree with Achidayat: the greater the value of the Recovery Factor, the better.
But in my opinion, perfect is the enemy of good and each strategy has a Recovery Factor range that is more appropriate and realistic.
Furthermore, I believe that there is a proper balance between several relevant parameters, such as Drawdown, Profit Factor, Recovery Factor, Sharp Ratio, etc. that are appropriate for each strategy or Expert Advisor under test.
Now I see what the Recovery Factor is and I love it as a metric.
As Achidayat points out, it appears to be taking the maximal draw down on the whole balance of the account as the denominator and using the total balance on the account as the numerator.
I think this and Sharpe may be some of the most important metrics for followers to see and compare since the objective of the signal following service first and foremost is DON'T LOSE MY MONEY. Only then can we achieve the second objective which is MAKE ME SOME MONEY.
Is there any way to sort signal systems by this metric or Sharpe or ProfitFactor? (Or only sortable by growth, equity, price, subs, date created)