I was hoping one of the system gurus on here could give me some feedback about analysing test results, specifically, the impact of very low win rates.
Our hypothetical system has the following stats:
- No of trades - 620 (1 trade every 3 days say)
- Win Rate - 20%
- Average Profit - 982
- Average Loss - 75
- Reward/risk - 13
- Expectancy - 1.86
- Average days in trade - 8
Questions as follows:
What is the lowest win rate that you, personally would trade (have traded profitably)?
Are the main concerns with a low win rate that (1) max dd will be greater and (2) inability to leverage as a result? Should I be concerned about anything else?
What expectancy would you consider a profitable system to produce - I know there are many other factors to consider but there must be some general benchmarks?
Would you trade the system with the stats above? Why/why not
Any help greatly appreciated,