Trading Systems and Money Management : A Guide to Trading and Profiting in Any Market

CONTENTS

INTRODUCTION xvii

ACKNOWLEDGMENTS xxi

PART ONE

HOW TO EVALUATE A SYSTEM 1

Performance Measures 4

Chapter 1

Percentages and Normalized Moves 7

About the Costs of Trading 12

Chapter 2

Calculating Profit 15

Average Profit per Trade 16

Average Winners and Losers 20

Standard Deviation 22

Distribution of Trades 25

Standard Errors and Tests 28

Other Statistical Measures 30

Time in Market 31

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