Recovery Factor : Is it important? - page 2

 
figurelli:
As far as I know there is no way yet to sort by this metrics, but in terminal signals folder you have more options than web, for example DD, pips, avg pips, etc.
Right!  Thanks for the reminder of the Terminal options.  Obrigado.
 
TalonTrader:
Right!  Thanks for the reminder of the Terminal options.  Obrigado.
Não tem de quê! (there's nothing to thank for).
 
Usually the RF value that makes the system worth considering is >3. However, when assessing your system by recovery factor, bear in mind that usually for a stable profitable strategy, the profit grows over time in a linear manner, whereas drawdown does not. Therefore in such case the longer the testing period, the bigger the RF value, so in order to maintain reliable assessment, you should not compare RF of 2 strategies for which you set different testing period lengths.
 
Enigma71fx:
Usually the RF value that makes the system worth considering is >3. However, when assessing your system by recovery factor, bear in mind that usually for a stable profitable strategy, the profit grows over time in a linear manner, whereas drawdown does not. Therefore in such case the longer the testing period, the bigger the RF value, so in order to maintain reliable assessment, you should not compare RF of 2 strategies for which you set different testing period lengths.
Very good insight Enigma.  Thanks so much.
 

Quote: from http://www.liteforex.com/tutorial/indicators-of-risk-analysis-66/

Most analytics agree that 1.6. recovery factor is a ground one. Under condition that the system has demonstrated the recovery factor more than 1.6, this system can be regarded as stable and effective one. If the recovery factor is less than 1.6. the loss of deposit is more probable, as the speed of recovery after drawdown can be not fast enough. 

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It's often said that the three most important things in real estate are .... the ideal profit factor and recovery factor be? how about winning %?

 

If you are looking for a Forex intraday system service · Low risk trades · Very low drawdowns. ... Just some important characteristics for the concept: ... high recovery factor & low drawdowns. The second important factor is multiple mistakes, which arise in the .... and drawdown, the trading system with a higher recovery factor will be better.

 

 

Thank you 

 

WoooooW..
my recovery factor is 44!!!!!!
what this means?

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09186044071:

WoooooW..
my recovery factor is 44!!!!!!
what this means?

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That means you are using a martingale and no stoploss and you will crash your account soon
 
angevoyageur:
That means you are using a martingale and no stoploss and you will crash your account soon

and it is a demo account. not worth mentioning. 

 
angevoyageur:
That means you are using a martingale and no stoploss and you will crash your account soon

yes..
martingale...but i improve methods and decrease risk..

from 1.1.2011 to 1.1.2015 in any month account dont call and  my account grows up 50% (min) monthly

Reason: