I know that there are many other factors to consider and that even an Avg. Trade of $100 does not mean that you definitely have a viable system. E.g. it might be from a single trade. Etc....
But let's focus on this particular number for now, despite the fact that there are many other factors to consider.
E.g. if the number is negative then this would not be a viable trading strategy.
It would have to be high enough to cover the "All In Costs", which through NT are $0.53 per contract.
But, there are other costs. E.g. the spread cost. If it costs 1 tick for each execution then in ES this is $25 per round trip. So does that mean that a viable ES strategy would have to have an "Avg. Trade" value of at least $25.53?
Hope you can see what I am getting at here. What I want to know, especially from those of you who are actually trading live with real money, is what range of numbers for "Avg. Trade" do you have in your back tests? Are they higher than $25.53?
Am I on the right track in looking for strategies that have Avg. Trade greater than $25.53 and rejecting those that only have, say, $7?
Any input/discussion greatly appreciated!
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