Thread by @theBuoyantMan

How to calculate average points per trade of a system:

Assume only 5 trades (for illustration purposes) in the system:

Trade 1: +300 points
Trade 2: -180 points
Trade 3: +70 points
Trade 4: -130 points
Trade 5: +100 points

- Total points made: (300-180+70-130+100) = 160 points
- Average points per trade: 160/5 = 32 points.

https://twitter.com/theBuoyantMan/status/1320034109029167104?s=20

So, when I say in the example (in the thread linked above) that the system makes on average 200 trades a year, and 29-30 points per trade in BNF, what do I mean?

Average points made per trade in BNF over the 200 trades.

That's what I mean.

It's sad that we have to explain this to people. This doesn't take 150+ IQ to figure out. It's basic high school math.

It's surprising people who claim to be quants and expert systematic traders (sold their system to JPM) with over 50k people following them don't know this.

Average points per trade of a system

is different from

Average points per WINNING trade of a system.

The former is the average of the results of all the trades a system takes.

The latter is the average of only the winning trades.

Don't know who's trying so hard.

It's surprising that people who indulge in commercial copyright theft and make money selling TA as quant even exist.

But when they post comedy like this due to lack of high school english comprehension and math abilities, what to say!