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Somebody once asked me, If you had to decide about a trading system by only looking at one performance report, which report would you choose? My first reaction was that this was a silly question. There are many factors that must be considered when choosing a trading system. Besides many performance indicators and ratios, there are things such as the average annual return, maximum drawdown, the Sharpe ratio, margin requirements and robustness.However, despite this wide array of information that must be considered, there is indeed one report that I have come to rely on more than any other report. This report has given me more comfort and confidence as a system trader than any other report. If I know that a system is properly created, I can almost use this report alone to decide about trading it! So what is this report? It is a Start Trade Report.A Trading Systems Start Trade ReportIn my opinion, a Start Trade Report can give the most robust, three-dimensional view possible of a trading system. It cuts through many pitfalls that come with traditional analysis and gets right down to the genuine heart of the matter. It even cuts through all the nonsense that comes up when looking at...more
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