Strategy Performance Reports And Metrics
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To succeed in trading you need to use some sort of trading strategy and system performance metrics. Just looking at the end result, the CAGR or the annual returns, might be very misleading. For example, you might abandon a strategy if you experience a drawdown you can’t handle. This is why you need to look at strategy and system performance metrics.
The most important strategy and system performance metrics are the equity curve, max drawdown, the win ratio, the Sharpe Ratio, the profit factor, the CAR/MDD, the RAR/MDD, and the Ulcer Index.
To continue reading and learning more about this topic, please read our article about trading strategy and system performance metrics.