System finder

Mathew when I go to system finder and click on stock profitable only. When you go to conservative you find small cap fundemental value the second signal listed. Then click on high risk high reward the same signal is the 10th listed. I don’t understand how the same signal could be in the 2 opposite searchs?

I think it is comparable to someone who is number two in the marathon and 10th in the sprint. More to the point, one ranking can put a heavy weight on Sharpe and the other ranking can put a heavy weight on Annualized return, then a system can be high on both. Probably the rankings are based on other measures, but the principle is the same. In other words, “conservative” is not opposite to “high reward”. It is opposite to “high risk”, but a system is never 100% conservative and we don’t know how much weight is given to “high risk” in “high risk high reward”. Thinking about it, it would be stupid to give it any positive weight, because that would mean that, from two systems with the same high reward, you would rank the one with the high risk above the one with low risk. Who would want that? So I suspect that the criterion is actually “high reward” and that MK added “high risk” in the description only to make people aware that risk is not an important factor in that ranking.

That makes sense. Thanks Jules