Whats your opinion on the most important aspects of a trading system

expectancy is by far most important figure.anything above 1 and you can maintain for years means you will make big money.you can adjust all other inputs around this number.

rickyb posted:
expectancy is by far most important figure.anything above 1 and you can maintain for years means you will make big money.you can adjust all other inputs around this number.

I know hat you mean now. R _expectancy Thank you for your input everyone

@rickyb

Do you mean expectancy in terms of R as Vantharp describes or do you mean expectancy in dollars as shown in Myfxbook?

Most important aspect of trading is making profits, nothing more.

In my opinion, trading strategy and risk management are the most important aspects.

PROFITINGSYSTEMS posted:
Most important aspect of trading is making profits, nothing more.

funny but absolutely true..
What's the point if not to be profitable

DeepakMallaya posted:
@rickyb

Do you mean expectancy in terms of R as Vantharp describes or do you mean expectancy in dollars as shown in Myfxbook?

i have not heard of vantharp so had a quick read online. i agree he said ' So in the real world of investing or trading, expectancy tells you the net profit or loss you can expect over a large number of single-unit trades. If the total amount of money lost is greater than the total amount of money gained, you are a net loser and have a negative expectancy. If the total amount of money gained is greater than the total amount of money lost, you are a net winner and have a positive expectancy.'i was thinking expectancy in pips for forex.why it is good is after hundreds of live trades you can get a idea of return after all the good and bad trades and costs.i currently have a system that has a expectancy between 2-3 pips after 137 trades on 1 pair usd/jpy.with 20 pip stop loss.i am very happy with that as i can increase lot size more and more if i retain same numbers over more and more time.so is around 10% of stop loss.if you have big stop losses and big take profit your expectancy should should be higher.

to add to confusion there are many traders with negative pip expectancy and positive dollar expectancy. also the other way around.positive pip expectancy and negative dollar expectancy.for a robust system have both and play it safe.

@rickyb

Thanks for the reply.
As you described , am of former type (' negative pip expectancy and positive dollar expectancy') .
But my avg Win $ is 1.75-2 times Avg Loss.