fxmarkets
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maybe but we might be able to reach through discussion an objective standard for measuring performance which will be useful for some. Ratio format strips out time so thats probably best. 3 months 3 years 3 decades. what are the ratios? Rudey mate what do you use to measure ?. Perhaps some do not even need or want to look or think about ratios and what information can be used from them to perhaps improve performance. But its pretty much standard for measuring all business performance. maybe someone with accounting knowledge will step forward.
FX, what you say has some truth behind it. SOME, and that is it. This conversation is going nowhere fast, this site is alike! There is a measure, but, it is so fine. How can an individual measure it exactly. There is no exactness. Understanding the markets? An open mind helps, and, a willingness to adjust. Get it! Or get trampelled! What do you want?
An objective standard for measuring performance?
One with in-depth accounting knowledge may not be able to lecture to accounting students because of the inability to communicate. That person may have passed all the academic and vocational exams to gain the lecturing job, but still cannot communicate.
One with a masters or higher qualification can get a high paying job in a bank based on that qualification, but after 10 or 20 years working in that bank and got retrenched he cannot find a job. Despite the amount of time he spent in the bank, time which could have allowed him to learn how banks make money, he didn't take the time to learn how banks make money. Despite the higher qualification and banking experience, he got retrenched and couldn't get a job. If he knows how banks make money why would he need a job?
How does one measure performance?
One with in-depth accounting knowledge may not be able to lecture to accounting students because of the inability to communicate. That person may have passed all the academic and vocational exams to gain the lecturing job, but still cannot communicate.
One with a masters or higher qualification can get a high paying job in a bank based on that qualification, but after 10 or 20 years working in that bank and got retrenched he cannot find a job. Despite the amount of time he spent in the bank, time which could have allowed him to learn how banks make money, he didn't take the time to learn how banks make money. Despite the higher qualification and banking experience, he got retrenched and couldn't get a job. If he knows how banks make money why would he need a job?
How does one measure performance?
fxmarkets
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Anonymous said:
Hi mate, I see your point, but the very role of an accountant is exactly that to identify, record, present information to enable users of the information to make informed judgements. Accounting is not so much counting but communication of what the figures mean . They have to be able to communicate to all. whoever the end user is of the info. directors or window cleaners.
But i agree with might not be very good at teaching... but they can tell or advise how to measure, why, and what the information means.They are bound by so many concepts within their body of professionalism including Objectivity. using of a method to which all agree, why should it be difficult to apply that to trading results ?
so its back to whats the best method, not can it be measured. What do you think is the best method ?
The best method for achieving trading results?
It depends on what one starts with, how much does he have, what facilities he has access to?
If one starts with $100 and turns that into $200 within a year and continues to increase his profits at an increasing rate, that's some result.
If another makes $100,000 a year, every year, but his capital is $1,000,000, that may not be such a good result.
It depends on what one starts with, how much does he have, what facilities he has access to?
If one starts with $100 and turns that into $200 within a year and continues to increase his profits at an increasing rate, that's some result.
If another makes $100,000 a year, every year, but his capital is $1,000,000, that may not be such a good result.
OpenMind said:
I think as long as you're satisfied, that's all that counts. Well done.
From an objective point of view, I'd be just a touch cautious at only 3 months. I'd also say that it seems you've had a good three months; maybe surviving a bad 3 months would be a test too. It's always harder to leave the emotions behind when things are going against you.
I have no reason to doubt that you'd come through it fine of course, it's just that it may be the ultimate test of your system.
fxmarkets
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hmm its the time factor again 3 months..... Openmind how many trades did you make over that period ? I'd suggest anything less than 20 to use as a measure may be too low . We know that 3 months of daily data trading is around 60 bars of data per market. so maybe 60 x per market = bars traded / trades .
you might then be able to calculate how many trades you will make over any time period, depending I suppose if you long and short or just one of the two. and project forward earnings if you like using your current ratios. Based on your current model of trading, which of course is still evolving,potentially. Using this info you have the option to improve for greater efficiency perhaps as we all do ?
you might then be able to calculate how many trades you will make over any time period, depending I suppose if you long and short or just one of the two. and project forward earnings if you like using your current ratios. Based on your current model of trading, which of course is still evolving,potentially. Using this info you have the option to improve for greater efficiency perhaps as we all do ?
Dispassionate
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..it's all about sample size.....
Watch out for Black Swans!
Watch out for Black Swans!
