What is a good profit factor? - Psychology and Money Management | futures io social day trading
futures io futures trading


What is a good profit factor?
Updated: Views / Replies:5,430 / 15
Created: by elitetradernyc Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

What is a good profit factor?

  #1 (permalink)
Elite Member
new york, ny
 
Futures Experience: Intermediate
Platform: ninjatrader
Favorite Futures: stocks, options
 
Posts: 80 since Nov 2012
Thanks: 6 given, 4 received

What is a good profit factor?

Hey guys, what is a good profit factor for an automated system? I have developed an automated system that gets between 2 and 3 in most timeframes in Ninjatrader, is this the best I can do?

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Portland, OR
 
Futures Experience: None
Platform: tos
Favorite Futures: NQ, SB, 6J, CL, GC
 
Massive l's Avatar
 
Posts: 1,458 since Mar 2011
Thanks: 922 given, 1,821 received


What's your winning percentage?

Psychology > Strategy ≥ Money
Reply With Quote
 
  #4 (permalink)
Elite Member
new york, ny
 
Futures Experience: Intermediate
Platform: ninjatrader
Favorite Futures: stocks, options
 
Posts: 80 since Nov 2012
Thanks: 6 given, 4 received

65-85% depending on the time frame and instrument.

Reply With Quote
 
  #5 (permalink)
Trading for Fun
Sunnyvale, CA
 
Futures Experience: Advanced
Platform: TTTrader
Favorite Futures: CL
 
Posts: 160 since Dec 2012
Thanks: 8 given, 94 received


elitetradernyc View Post
Hey guys, what is a good profit factor for an automated system? I have developed an automated system that gets between 2 and 3 in most timeframes in Ninjatrader, is this the best I can do?

Anything that consistently gives you noticeably greater net ROI than the interest rate you get from your local friendly bank, and such that you don't incur a dangerous drawdown which threatens your ability to continue trading (ie a margin call).

winning percentage is meaningless without discussing drawdown

Reply With Quote
 
  #6 (permalink)
Elite Member
Portland, OR
 
Futures Experience: None
Platform: tos
Favorite Futures: NQ, SB, 6J, CL, GC
 
Massive l's Avatar
 
Posts: 1,458 since Mar 2011
Thanks: 922 given, 1,821 received


elitetradernyc View Post
65-85% depending on the time frame and instrument.

2-3 profit factor with 65-85% consistency is amazing, with any system (discretionary/automated) IMO.
Now can it be done going forward is the question? Also, how long was your lookback for your testing?

Psychology > Strategy ≥ Money
Reply With Quote
 
  #7 (permalink)
Elite Member
new york, ny
 
Futures Experience: Intermediate
Platform: ninjatrader
Favorite Futures: stocks, options
 
Posts: 80 since Nov 2012
Thanks: 6 given, 4 received

The period is for the past 8 years or so. Will let you know on the forward testing, I think I need to get the NT license for that a sim account at IB.

Reply With Quote
 
  #8 (permalink)
Elite Member
new york, ny
 
Futures Experience: Intermediate
Platform: ninjatrader
Favorite Futures: stocks, options
 
Posts: 80 since Nov 2012
Thanks: 6 given, 4 received

Max drawdown % pretty steep at 20%.

Reply With Quote
 
  #9 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,238 since Jun 2009
Thanks: 29,350 given, 83,214 received

Most likely your results are not at all accurate.

You probably aren't familiar enough with NT's "gotchas" and have fallen into a trap of limit orders, 1 bar targets, or exotic bar types, among others.

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
The following user says Thank You to Big Mike for this post:
 
  #10 (permalink)
Elite Member
Netherlands
 
Futures Experience: Intermediate
Platform: Ninjatrader
Favorite Futures: 6E
 
Zwaen's Avatar
 
Posts: 247 since Dec 2010
Thanks: 762 given, 221 received


This is an interesting question what was on my mind also. I'am very interested in what the experienced traders on this board would view as a cutt-off point of the testing and would trade a method - automated or discretionary - with real cash.

If you take into account the following parameters:

1.hitratio
2.risk/reward ratio
3.profit factor ( combination of 1&2)
4.number of trades the method generates per unit of time per instrument
5. other...??

What would be your minimum requirements of these parameters, to start trading your method live?
What is realistically attainable?

One of my worst enemies are my own false assumptions
Reply With Quote

Reply



futures io > > > What is a good profit factor?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Good Economy Not Good Enough for Investors: El-Erian Quick Summary News and Current Events 0 January 6th, 2012 03:30 PM
Investors' 'Financial Amnesia' Was a Factor Behind the Crisis Quick Summary News and Current Events 0 December 28th, 2011 06:30 AM
Decent Profit Factor DarrenH Psychology and Money Management 6 November 14th, 2010 06:11 PM
Factor of N Eric j Trading Journals 164 November 5th, 2010 12:53 PM
Charts and the time factor... Meggs Traders Hideout 2 August 16th, 2009 09:41 AM


All times are GMT -4. The time now is 06:03 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.12 seconds with 19 queries on phoenix via your IP 54.82.79.109