Quote:
|
Originally Posted by furious_angel
Ok... Well I guess I look at the ea the same way I would look at a company’s balance sheet. Does that make sense? Yes/no… If not, let me explain a bit more. Let’s say that you had 2 companies’ (XYZ & ABC) that were similar in reporting profits. Both reported 1000.00 in profit for week, but ABC did this in 10 trades while XYZ did this in 20 trades. Also after doing some more digging you find that XYZ actually made 5000.00 in profit for the week and had 4000.00 in losses. ABC Company had 1500.00 in profit and had 500.00 in losses. Which company, if you were to invest in, would you pick? And Why?  |
I would go with ABC because they only lost 1/3 of what they made, whereas XYZ lost 4/5 of what they made.
I see that as ABC winning 66% and XYZ winning 20%.
Several assumptions here...All this is of course assuming that we are comparing apples to apples, meaning that they are both in the same industry group and working from the same basic inputs...or in the case of currencies... the same data over the same date range. So all other things being equal we are only looking at the output variances based on identical inputs, so that we are only measuring the difference in how they perform on the same conditions.