262 CHAPTER ◆ 2 8 Perform SPC Analysis
higher reward to risk ratios similar to continuous improvements for better quality cars,
appliances, and electronics over the last 40 years.28.7.1. Best Practices
● U s e X bar and R charts to monitor metrics.
● U s e d and p charts to monitor things such as number of losing trades.
● U s e C p and C pk charts to measure the capability of the system to operate within
tolerance.
● Examine control charts for out-of-control signals other than just crossings of control
limits.
● Include SPC charts as part of backtesting processes in Stage 2 to understand what
normal performance is.