JITF, you need to compare apple with apple, you are not going to compare apple with orange.
Any strategy could have a high Shpare Ratio in short time due to luck, at the time when it starts. You need to compare strategies that are older enough and with the same time span. Of all C2 strategies older than 109 days, there are only 3 strategies whose Sharpe Ratio are above 6. That means my strategy is in the top 3 for strategies older than 109 days, with regards to risk and reward ratio.
Tell me which strategy you use to compare with my strategy. You obviously made big mistake in your calculation.
I trade a lot mini contract, which is only 1/2 standard contract.Some mini is 1/4 standard contract. So you need to convert them to standard contract.
Then you need to compare strategies in the same time span. If he holds his position for average a week and I hold my position average 12 hours, then he could be better than me in that statistic, but in this situation, his return will be significantly lower than mine.
Just tell me which strategy you use to compare, I will show you what is your problem.
Finally, you need to compare my strategy with average of all other futures strategies.
If you pick out a best strategy and compare it with mine, then yes, it is better than mine, but that doesn’t prove your point that my strategy is high risk, because my strategy is still significantly better than average futures strategies with regards to risk and reward ratio.
Here is a strategy that most subscribers think is low risk, because its drawdown is about 10, which is significantly lower than my drawdown.
Now check out on 12/28/2016, when his equity was about $100000, he traded 20 ES contracts, that is $5000/contract.In other occasions, he also traded 20 or 16 contracts many times.
If you check out my trades , normally I trade $20000/contract, I will not trade below $10000/contract, even in extreme situation.
Now tell me which strategy has higher leverage?
