Performance Analytics for the Power E-Mini Trade Alerts
We’ve Developed a Better Way to Measure Stats – Tick Traction
One of the challenges of posting “Official Trade Stats” based off of Automated System Alerts is that not everyone will trade the signals in the exact same way. In other words, unless every variable, i.e. position size, initial stop placement, delta targets, trailing stop rules, scaling methodology etc. is strictly quantified, for every single trade, the concept of “Official Trade Results” is meaningless. Traders are at different levels and employ different tactics and money management rules in their approach to the market. Ten traders can end up with 10 different trade results all based off the same entry alert. Because of this, the only way to objectively evaluate the performance of system trade calls is to analyze what I call Positive/Negative Tick Traction.
How To Interpret The Daily Tick Traction Performance Charts
A simple and effective way to measure the accuracy of Automated Trading Signals is to plot the number of Positive vs. Negative tick movements experienced after a Trade Alert is issued and a trade entered.
In Trade Example A you will notice that after the trade alert was issued, that price only moved 2 ticks in your favor before reversing and incurring -2.50 points of negative tick traction most likely hitting a stop. This is an example of a bad trade entry with little follow-through. Trade B on the other hand only experiences -2 ticks of negative traction or “drawdown” before moving in your favor positive 2.50 points. This is an example of a winning trade entry with little drawdown.
PowerEmini Weekly System Stats
Each individual discretionary trader can choose from different methodologies to Trade off the Momentum System Breakout levels. The System computes High Probability Trade Barriers and alerts us when price approaches these levels. (The system does not know if or where we decide to take a trade.) Individual Trader Results will be based on many personal factors. i.e. Trade Size, Trade Configuration and Scaling, Initial Stop Placement, Trailing Stop Movement, Price Targets, etc.
Because of this, no two traders are guaranteed to achieve the same exact trade results. The main question you want to ask regarding the System Performance Stats is: Do the System Signals expose me to MORE Positive Price Traction Vs. Negative Traction?
( Stats Automatically Generated by the New v4.x System – Launched October 2017 )