Hi all,
I bring here a new ratio to give us a quickly measure in order to identify if a strategy is worth to follow.
Also, this can be used to select providers from Autotrade service.
We all know the Risk/Reward ratio that we apply for each order. We can apply the same ratio to analyse the whole strategy account.
I call it Global Risk/Reward:
One of the criterias to become a provider on myfxbook is:
- Return of at least 10% and higher than drawdown => So the ratio must be in between 0 and below 1
More examples here:
https://crazytraderfx.blogspot.fr/2013/09/riskreward.htmlI recently lauched a new EA for AutoTrade that should provide the best Global Risk/Reward... meaning that the follower's capital is 100% safe and the growth is consistant.
Cheers