timsk
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This might seem an odd question coming from a 'T2W Advisor' and longstanding member - but there you go! Actually, to be more precise, it's what constitutes a break even trade that the thread is really all about. Consider the three trades below:
TRADE A
Gross P/L: +3
Commission: -2
Net P/L: 1
TRADE B
Gross P/L: +2
Commission: -2
Net P/L: 0
TRADE C
Gross P/L: +1
Commission: -2
Net P/L: -1
A large percentage of my trades oscillate around the break even point and, to my way of thinking, all of them are failed trades, including trade A. Even though it has a nominal profit, I don't really want to include it as a winning trade, as it wreaks havoc with the profit ratio. The success ratio can be affected too, if the results are evaluated literally. So, what do you do - does break even literally mean any trade with a Net or Gross P/L of 0? Or can a break even trade have a Net or Gross P/L of plus or minus 1 point, 2 points, 3 points or more? Do you evaluate your results before or after taking commissions into account? If you include comm's, do you also include an additional sum per trade to cover the other trading expenses such as data and ISP subscriptions etc?
Tim.
(Note to mod's: I'm not sure this thread is in the best place - feel free to move it if there's a more appropriate home for it.)
TRADE A
Gross P/L: +3
Commission: -2
Net P/L: 1
TRADE B
Gross P/L: +2
Commission: -2
Net P/L: 0
TRADE C
Gross P/L: +1
Commission: -2
Net P/L: -1
A large percentage of my trades oscillate around the break even point and, to my way of thinking, all of them are failed trades, including trade A. Even though it has a nominal profit, I don't really want to include it as a winning trade, as it wreaks havoc with the profit ratio. The success ratio can be affected too, if the results are evaluated literally. So, what do you do - does break even literally mean any trade with a Net or Gross P/L of 0? Or can a break even trade have a Net or Gross P/L of plus or minus 1 point, 2 points, 3 points or more? Do you evaluate your results before or after taking commissions into account? If you include comm's, do you also include an additional sum per trade to cover the other trading expenses such as data and ISP subscriptions etc?
Tim.
(Note to mod's: I'm not sure this thread is in the best place - feel free to move it if there's a more appropriate home for it.)