How to evaluate consistency of one's own performance?
Note: This poll is a multiple selection one and votes are public.
Although one can never be sure that a particular performance will extend throughout all our trading career, how could we reasonably consider that a strategy is yielding a stable and steady return and thus has reached a fair level of consistency and can be relied upon?
Another question would be if a maximum floating drawdown is permanently about 10% of NAV with an average of 6/7% floating drawdown is too much of a drawdown, or if it would be acceptable considering that the real risk is always limited to less than 1.67% on any open position and there are never more than 6 open positions at a given time in extreme conditions, more usually averaging 2 or 3 open positions.
Thank you for your help, should you decide to answer the poll.
Note: This poll is a multiple selection one and votes are public.
Although one can never be sure that a particular performance will extend throughout all our trading career, how could we reasonably consider that a strategy is yielding a stable and steady return and thus has reached a fair level of consistency and can be relied upon?
Another question would be if a maximum floating drawdown is permanently about 10% of NAV with an average of 6/7% floating drawdown is too much of a drawdown, or if it would be acceptable considering that the real risk is always limited to less than 1.67% on any open position and there are never more than 6 open positions at a given time in extreme conditions, more usually averaging 2 or 3 open positions.
Thank you for your help, should you decide to answer the poll.