Minimum tradable expectancy?

January 24th, 2010, 03:12 PM

Hello!

I was wondering what you guys consider the minimum expectancy you'd have to find in a system or methodology before you would trade it. For instance, I've tested some systems that have a very small expectancy, but worth trading? No due to comms and slippage etc. What do you guys think?

January 28th, 2010, 04:50 PM

solom113

Hello!

No due to comms and slippage etc.

Could you clarify whether or not you included commissions and slippage?

January 29th, 2010, 01:37 AM

If your thinking in terms of expectancy, i think it helps alot to become familiar with expected value in a more general sense.
chrisperruna.com Blog Archive What is EV or Expected Value
Expected value - Wikipedia, the free encyclopedia

You can make an arguement that you should take every trade that has positive expected value as long as it fits within a good risk management strategy.

Minimum tradable expectancy?

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Minimum tradable expectancy?