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[USER=2975]@ducati916[/USER], I'm with [USER=17857]@qldfrog[/USER] - What a great post about maximising profits, linked to the timing of the exit. Yes, it's a fine line exiting a position too early compared to exiting a position too late.

Conundrum
The timing of the exit can be very confusing & difficult to solve & overcome. As coders, we are tasked to navigate between the two. I also like the distinction you draw between "potential profits" & "paper profits" exiting early versus exiting late, the wording used was not lost on me.

Grail
As you have used the word "grail" it's only fitting I make an additional reference to Nick Radge's book "Unholy Grails" just for [USER=50018]@Newt[/USER] - quoting a passage from his book.

To add to Duc's post
Returns alone cannot be a benchmark of robustness of any system. CAR/MaxDD is as good as any metric to measure the "Risk adjusted returns"

For completeness
Duc's an (a)
I'm more of a (a) + (b) guy - so lets call me (c)
(c) Exiting a position quickly after confirmation that the move is over to protect profits or to limit my loses - the metric to measure this is CAR/MaxDD

CAR/MaxDD
In english, the Compound Annual % Return / divided by Max. system % drawdown is a good measure to use in the strategy development phase.

System Drawdown versus Trade Drawdown
When running a backtest some get confused how the strategy handles System Drawdown versus Trade Drawdown as both are important. In a nutshell, system drawdown is calculated on entire portfolio, while trade drawdown is calculated on a particular trade.

Just for Newt
This an extract from Nick's book - Unholy Grails: A New Road to Wealth confirming we both value the metric "CAR/MaxDD" the risk-adjusted measure of any trading system.
https://books.google.com.au/books?id=SDjPDwAAQBAJ&pg=PT47&lpg=PT47&dq=CAR/MaxDD&source=bl&ots=ZAM-0_A5lj&sig=ACfU3U0oKu-fD62eTtrBzfsCD1F8gLEQTQ&hl=en&sa=X&ved=2ahUKEwjB4YPLht_oAhXbAnIKHeIZACYQ6AEwB3oECAwQKw#v=onepage&q=CAR/MaxDD&f=false

[ATTACH=full]102180[/ATTACH]

Skate.

<blockquote data-quote="Skate" data-source="post: 1067029" data-attributes="member: 57364">[USER=2975]@ducati916[/USER], I&#039;m with [USER=17857]@qldfrog[/USER] - What a great post about maximising profits, linked to the timing of the exit. Yes, it&#039;s a fine line exiting a position too early compared to exiting a position too late. ConundrumThe timing of the exit can be very confusing &amp; difficult to solve &amp; overcome. As coders, we are tasked to navigate between the two. I also like the distinction you draw between &quot;potential profits&quot; &amp; &quot;paper profits&quot; exiting early versus exiting late, the wording used was not lost on me.GrailAs you have used the word &quot;grail&quot; it&#039;s only fitting I make an additional reference to Nick Radge&#039;s book &quot;Unholy Grails&quot; just for [USER=50018]@Newt[/USER] - quoting a passage from his book.To add to Duc&#039;s postReturns alone cannot be a benchmark of robustness of any system. CAR/MaxDD is as good as any metric to measure the &quot;Risk adjusted returns&quot; For completenessDuc&#039;s an (a)&nbsp; I&#039;m more of a (a) + (b) guy - so lets call me (c) (c) Exiting a position quickly after confirmation that the move is over to protect profits or to limit my loses - the metric to measure this is CAR/MaxDDCAR/MaxDDIn english, the Compound Annual % Return / divided by Max. system % drawdown is a good measure to use in the strategy development phase.System Drawdown versus Trade DrawdownWhen running a backtest some get confused how the strategy handles System Drawdown versus Trade Drawdown as both are important. In a nutshell, system drawdown is calculated on entire portfolio, while trade drawdown is calculated on a particular trade.Just for Newt This an extract from Nick&#039;s book - Unholy Grails: A New Road to Wealth confirming we both value the metric &quot;CAR/MaxDD&quot; the risk-adjusted measure of any trading system.<a href="https://books.google.com.au/books?id=SDjPDwAAQBAJ&amp;pg=PT47&amp;lpg=PT47&amp;dq=CAR/MaxDD&amp;source=bl&amp;ots=ZAM-0_A5lj&amp;sig=ACfU3U0oKu-fD62eTtrBzfsCD1F8gLEQTQ&amp;hl=en&amp;sa=X&amp;ved=2ahUKEwjB4YPLht_oAhXbAnIKHeIZACYQ6AEwB3oECAwQKw#v=onepage&amp;q=CAR%2FMaxDD&amp;f=false" target="_blank">https://books.google.com.au/books?id=SDjPDwAAQBAJ&amp;pg=PT47&amp;lpg=PT47&amp;dq=CAR/MaxDD&amp;source=bl&amp;ots=ZAM-0_A5lj&amp;sig=ACfU3U0oKu-fD62eTtrBzfsCD1F8gLEQTQ&amp;hl=en&amp;sa=X&amp;ved=2ahUKEwjB4YPLht_oAhXbAnIKHeIZACYQ6AEwB3oECAwQKw#v=onepage&amp;q=CAR/MaxDD&amp;f=false</a>[ATTACH=full]102180[/ATTACH] Skate.</blockquote>

[QUOTE="Skate, post: 1067029, member: 57364"] [USER=2975]@ducati916[/USER], I'm with [USER=17857]@qldfrog[/USER] - What a great post about maximising profits, linked to the timing of the exit. Yes, it's a fine line exiting a position too early compared to exiting a position too late. [B]Conundrum[/B] The timing of the exit can be very confusing & difficult to solve & overcome. As coders, we are tasked to navigate between the two. I also like the distinction you draw between "potential profits" & "paper profits" exiting early versus exiting late, the wording used was not lost on me. [B]Grail[/B] As you have used the word "grail" it's only fitting I make an additional reference to Nick Radge's book "Unholy Grails" just for [USER=50018]@Newt[/USER] - quoting a passage from his book. [B]To add to Duc's post[/B] Returns alone cannot be a benchmark of robustness of any system. CAR/MaxDD is as good as any metric to measure the "Risk adjusted returns" [B]For completeness[/B] Duc's an (a) I'm more of a (a) + (b) guy - so lets call me (c) (c) Exiting a position quickly after confirmation that the move is over to protect profits or to limit my loses - the metric to measure this is CAR/MaxDD [B]CAR/MaxDD[/B] In english, the Compound Annual % Return / divided by Max. system % drawdown is a good measure to use in the strategy development phase. [B]System Drawdown versus Trade Drawdown[/B] When running a backtest some get confused how the strategy handles System Drawdown versus Trade Drawdown as both are important. In a nutshell, system drawdown is calculated on entire portfolio, while trade drawdown is calculated on a particular trade. [B]Just for[/B] [B]Newt [/B] This an extract from Nick's book - Unholy Grails: A New Road to Wealth confirming we both value the metric "CAR/MaxDD" the risk-adjusted measure of any trading system. [URL]https://books.google.com.au/books?id=SDjPDwAAQBAJ&pg=PT47&lpg=PT47&dq=CAR/MaxDD&source=bl&ots=ZAM-0_A5lj&sig=ACfU3U0oKu-fD62eTtrBzfsCD1F8gLEQTQ&hl=en&sa=X&ved=2ahUKEwjB4YPLht_oAhXbAnIKHeIZACYQ6AEwB3oECAwQKw#v=onepage&q=CAR%2FMaxDD&f=false[/URL] [ATTACH=full]102180[/ATTACH] Skate. [/QUOTE]

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