Hello,
In an effort to show impartial results, the performance will be calculated using only the beginning of the range as the entry point, not the midpoint as it was used before. A slight change in the results can be expected as the negative results will increase and the positive results will decrease by about 1/2 of the entry range size.
In addition to the usual data, the R multiples will be shown in order for anyone to be able to find the Expectancy
Also the system used in our setups will be measure by the Van Tharp SQN The formula to calculate the SQN is: SQN=root(n)*expectancy/stdev®
Where:
• root(n) – the square root of your number of trades
• expectancy – expectancy of your trading system in R multiples
• stdev® – standard deviation of your trade profit/loss R multiples
• 1R is your initial risk on a trade.
Here’s the interpretation of SQN scores (n=100).
SQN Score............ Quality of the System
1.6-1.9 ................ Poor but tradable
2.0-2.4 ................ Average
2.5-2.9 ................ Good
3.0-5.0 ................ Excellent
5.0-6.9 ................ Superb
7.0-..................... Holy Grail
Best Regards,
FCS Team
1/17/2011
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