Replies to post #174 on Pirate Traders

[Bird of Prey]

You are correct in valuing your system by the amount of profit it brings in. I disagree that anyone can do six out of ten and make real money at it.

When I am evaluating a system for potential purchase I use the following criteria

Winning percentage
Largest loss
Largest gain
Maximum draw
Total P/L

Your trades this week aren't a large enough sample yet, but the results are encouraging.

All trades based on 1000 shares with .01/share cost per trade

1/28

Long CHINA 2.32, exit 2.29, <0.03> -$50 Draw $2,330

SS GNSS @ 57.98, exit half @ 56.92, +1.06, exit half @ 57.50 +0.48 +$740 Draw $57,990

SS ISIL @ 30 exit @ 30 BE, -$20 Draw $30,010

SS QCOM 45.63, exit half @ 45.02 +0.61, exit half 45.06, +0.57 +$560 Draw $45,030

1/29

long VRSN @ 33.63, exit 33.60, <0.03> -$50 Draw $33,640

SS ISIL @ 33.00, exit @ 33, BE -$20 Draw $33,010

SS EXPE @ 54.15, exit 54.75, <0.60> -$620 Draw $54,160

SS VRTS @ 46.13, exit @ 45.93, +0.16 +$140 Draw $46,140

SS GNSS @ 58.29, exit half 56.40, +1.79, exit half @ 56.64, +1.55 +$1650 Draw $58,300

SS ISIL @ 33.01, exit @ 32.38, +0.62 +$610 Draw $33,020

SS VRTS @ 46.68, exit @ 45.93, +0.75 +$740 Draw $46,690

long GNSS @ 56.60, exit @ 56.19, +0.59 +$580 Draw $56,610


Win % 58.3
Largest Gain $1650
Largest Loss $620
Maximum Draw $58,300
Total P/L $4260


I typically trade longer term than the trades shown here and therefore look for a P/L that is 10% or more of the Max Draw. But in light of the short term nature of this system I find these numbers very intriguing.
Not as a total portfolio mind you but an integral part of a well diversified one.

Very Impressive indeed!





The Bird of Prey