The P/L per unit figure for Stock Trading systems is not that beneficial- its more beneficial for futures tradign systems.
I propose adding a factor called Avg% win so that way when looking at that figure you can tell if it is a scalping system or not.
I’m not against it, but would you say that buying stocks at 0.25 and selling them at 0.26 (= +4%) is not scalping? I think it is, and so this percentage doesn’t solve the problem. It will be an improvement to have this percentage too, but I wonder if there are better possibilities.
yes, in your example it would be…
I guess a quick look at the recent closed trades would solve that pretty quickly though
going from .25. to .26 would be scalping … its only 4% gain… but lets say it went from .25 to .35 for a 40% gain- that would not be scalping…
so the avg win/loss% per trade could be very beneficial…
plus… some systems only trade a small percentage of capital (i.e- on a 100k acct, total portfolio would be 30k) but avg big % gains on the smaller dollar trades… glancing at this figure, one could see that the system developer is a good at picks… and could allocate a larger % of his/hers portfolio for individual trades …
I am pretty sure most here would appreciate this statistic (those that follow stock systems)
