Profit factor of a strategy - stop loss advice?

[stefy]

Hi everyone

I was wondering if anyone feels to discuss their strategies' profit factors.

I developed a strategy that apparently achieves a positive return, but I'm not happy with the Profit factor, which ranges between 1.4 and 1.1 for different securities.

I tried to use simple stop losses (fixed pip amounts or ATR multiples) but I reduced significantly the profits as well, improving slightly the profit factor.

What kind a profit factor a good strategy should yield? Any advice on stop losses apart from the ones mentioned above?

Thank you everyone

[michaelbb]

Profit factor of 1.1 to 1.4 results in a Average Profit/Loss of 1 or 2 ticks? I think this will not work (if you dont have 120 % winners).

I get best profit from my strategies with very wide or without stops - but then you have to take a lot of heat.

What works good for me is to use some logical exit strategies with wide stops (breakeven +1 exit if there is no movement in my direction, exit on close crossing short ma after some movement, ...).

Dont know any other stop losses wich work much better - I use keltner channel from prev bar (MA +/- StdDev * Factor).

regards, Mike

[PrTester]

Hi everyone

I was wondering if anyone feels to discuss their strategies' profit factors.

I developed a strategy that apparently achieves a positive return, but I'm not happy with the Profit factor, which ranges between 1.4 and 1.1 for different securities.

I tried to use simple stop losses (fixed pip amounts or ATR multiples) but I reduced significantly the profits as well, improving slightly the profit factor.

What kind a profit factor a good strategy should yield? Any advice on stop losses apart from the ones mentioned above?

Thank you everyone

I some time use this: http://www.ninjatrader-support.com/v...ead.php?t=3660

[maninjapan]

Im not sure if this would work for everyone but I usually use a percentage stoplos/take profit for my strategies. Its usefull especially if you are using it over multiple symbols and you dont get the same slippage as using the obvious exit points for a certain strategy ( most people use the same technical exits) 1 tick below the swing low etc.