Non profit based performance metric

A non-price based quantitative measure for evaluation of trading performance might be comparing how closely you enter or exit a position to a peak or valley and/or based on subsequent retracement.

A discretionary trader or trading system that has a high peak/valley hit ratio in some markets reveals that the trader may be trading with optimal rules for, at least, some market conditions and would suggest the need to look for possible filters versus discarding the strategy outright.

 

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