NexusFi: Find Your Edge


Home Menu

 





Van Tharp's SQN (system quality number)


Discussion in Psychology and Money Management

Updated
      Top Posters
    1. looks_one Big Mike with 9 posts (2 thanks)
    2. looks_two Luger with 5 posts (9 thanks)
    3. looks_3 Sandpaddict with 4 posts (2 thanks)
    4. looks_4 Wikmar with 3 posts (4 thanks)
      Best Posters
    1. looks_one caprica with 2 thanks per post
    2. looks_two Shivaya with 2 thanks per post
    3. looks_3 Luger with 1.8 thanks per post
    4. looks_4 Wikmar with 1.3 thanks per post
    1. trending_up 44,452 views
    2. thumb_up 26 thanks given
    3. group 30 followers
    1. forum 42 posts
    2. attach_file 5 attachments




 
 

Van Tharp's SQN (system quality number)

 
 
Wikmar's Avatar
 Wikmar 
Madrid - Spain
 
Experience: Advanced
Platform: Own (more or less)
Trading: S&P500, FDAX, €/$, CL, etc.
Posts: 143 since May 2014
Thanks Given: 1,647
Thanks Received: 121


Sandpaddict View Post
Wikmar. Thank you so much that was a great paper. Fantastic!

This is of course the problem us discretionary traders have as well.

It's a hidden weakness as we don't look at it like we should. Maybe thats the SQN coming through? Lol.

I really like your idea for figuring out MaxDDs impact and incorporating it in with DDArea for the total percentage of drawdown...

"The weight p is obtained by a rule of three: DDArea/N + MaxDD% is to 100, as MaxDD% is to p%. And p = p% / 100."

This really struck me. I love it. Im going to have to go see how you calculate the DDarea next. I find that very interesting.

Your forumla for PQM seems to help solve the issue you intended from the outset.

This is just such a beautiful explanation and a TRUER representation as the Risk Adjusted Returns are accounted for.

I really can't get over the elegance of this paper!

Thank you so much for sharing!

Joseph

Sent using the NexusFi mobile app


Joseph, I thank you very much for the recognition, since the idea seems to have seemed good to you. In fact, there are hardly any more exciting words for me. Even more so when what prevails in general is not what but who and with what marketing does things.

I did that paper, which I could have done a couple of years earlier, with the sole intention of making a contribution to science, if possible; a quality one. Receiving feedback that I have achieved it is something very great for me. I wish I could think that it is really objectively important. Thanks!.

That said, I think I remember that I had a thread on this subject in which I think I should move the debate of this paper so as not to divert this thread on SQN. However, it does seem important to have warned here that SQN, the family to which it belongs and also K-Ratio (I communicated this to Lars Kestner before publishing the paper), said with all humility but with realism, I think they have scientifically fallen, and there are one or more better alternatives.

I published the paper and did not promote it at all. Probably I should have done it, not for me, but for the purpose that pursues this subject. I am going to see if I find that thread. Forgiveness.

Greetings and thanks again!.

Home people force
https://wikmar.wordpress.com/
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Better Renko Gaps
The Elite Circle
NexusFi Journal Challenge - April 2024
Feedback and Announcements
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
Futures True Range Report
The Elite Circle
Are there any eval firms that allow you to sink to your …
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
39 thanks
Battlestations: Show us your trading desks!
26 thanks
NexusFi site changelog and issues/problem reporting
25 thanks
The Program
17 thanks
 
 
Wikmar's Avatar
 Wikmar 
Madrid - Spain
 
Experience: Advanced
Platform: Own (more or less)
Trading: S&P500, FDAX, €/$, CL, etc.
Posts: 143 since May 2014
Thanks Given: 1,647
Thanks Received: 121

The thread:




And where I have continued the subject:


Home people force
https://wikmar.wordpress.com/
Thanked by:
 
 
Sandpaddict's Avatar
 Sandpaddict 
Vancouver, Canada
 
Experience: Advanced
Platform: Ninjatrader, MT4
Broker: IB, Global Prime
Trading: Futures CFDs
Posts: 684 since Mar 2020
Thanks Given: 975
Thanks Received: 637



Wikmar View Post
Joseph, I thank you very much for the recognition, since the idea seems to have seemed good to you. In fact, there are hardly any more exciting words for me. Even more so when what prevails in general is not what but who and with what marketing does things.

I did that paper, which I could have done a couple of years earlier, with the sole intention of making a contribution to science, if possible; a quality one. Receiving feedback that I have achieved it is something very great for me. I wish I could think that it is really objectively important. Thanks!.

That said, I think I remember that I had a thread on this subject in which I think I should move the debate of this paper so as not to divert this thread on SQN. However, it does seem important to have warned here that SQN, the family to which it belongs and also K-Ratio (I communicated this to Lars Kestner before publishing the paper), said with all humility but with realism, I think they have scientifically fallen, and there are one or more better alternatives.

I published the paper and did not promote it at all. Probably I should have done it, not for me, but for the purpose that pursues this subject. I am going to see if I find that thread. Forgiveness.

Greetings and thanks again!.

Yes I'm glad you started a dedicated thread. I will go there next.

I was going to suggest that as this is an incredibly important subject and as far as I'm concerned this such a beautiful piece of math explaining this huge hole in trading it needs a much wider audience!

You said your intention was to make a contribution to science and a quality one one at that.

Well sir I believe you have succeed in both counts.

Your contribution should not be discounted as a nice little formula.

What it explains is real, has a real effect and can now be accounted for and even more, compared, contrasted and modeled.



Did I mention how much this paper impacted me?

Thank you @Wikmar



Sent using the NexusFi mobile app

Visit my NexusFi Trade Journal
Thanked by:

 



Last Updated on May 12, 2021


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
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.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts