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		<title><![CDATA[Forex Software — Acceptance Criteria Opinions Requested: R/DD]]></title>
		<link>https://forexsb.com/forum/topic/6846/acceptance-criteria-opinions-requested-rdd/</link>
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		<description><![CDATA[The most recent posts in Acceptance Criteria Opinions Requested: R/DD.]]></description>
		<lastBuildDate>Mon, 21 Aug 2017 04:28:14 +0000</lastBuildDate>
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			<title><![CDATA[Re: Acceptance Criteria Opinions Requested: R/DD]]></title>
			<link>https://forexsb.com/forum/post/45743/#p45743</link>
			<description><![CDATA[<div class="quotebox"><blockquote><p>The reason I ask is because currently the Acceptance Criteria do not allow for a R/DD of less than 2</p></blockquote></div><p>I&#039;ll fix that today.</p>]]></description>
			<author><![CDATA[null@example.com (Popov)]]></author>
			<pubDate>Mon, 21 Aug 2017 04:28:14 +0000</pubDate>
			<guid>https://forexsb.com/forum/post/45743/#p45743</guid>
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			<title><![CDATA[Re: Acceptance Criteria Opinions Requested: R/DD]]></title>
			<link>https://forexsb.com/forum/post/45740/#p45740</link>
			<description><![CDATA[<div class="quotebox"><cite>qattack wrote:</cite><blockquote><p>I am using an OOS period of ~7 months (IS ~15 months).</p><p>Minimum Number of Trades is 100 IS and 40 OOS.</p><p>What is the &quot;Minimum R/DD&quot; that may be &quot;acceptable&quot; in the OOS period.</p><p>Let me define &quot;acceptable&quot; in this case. This would be (close to) the minimum R/DD during this OOS that could occur for the strategy to still be considered for use in your portfolio pending further results or testing. For the lower R/DD values, this would be an &quot;inconclusive results&quot; conclusion. The strategies that fall within these range can be further considered or pruned altogether.</p><p>The reason I ask is because currently the Acceptance Criteria do not allow for a R/DD of less than 2. I think this may be a bit too restrictive for short-term periods and it this minimum should probably be dropped to 1 (maybe even less?). In general, R/DD gets larger with more data. A standard I&#039;ve seen used for validation is R/DD of 0.5 per year.</p><p>So for example, in my 7 month OOS period, my EA has made a total profit of $1000 while incurring a $1000 drawdown somewhere along the way, that seems that it may still be a potentially viable strategy with a R/DD of 1.</p></blockquote></div><p>There is 3 catch here.</p><p><strong>First Catch</strong><br /></p><div class="quotebox"><blockquote><p>The reason I ask is because currently the Acceptance Criteria do not allow for a R/DD of less than 2</p></blockquote></div><p>I can filter and use R/DD less than 2, just use the &quot;down&quot; keyboard key<br /><span class="postimg"><img src="http://i.imgur.com/9IfHU3S.gif" alt="http://i.imgur.com/9IfHU3S.gif" /></span></p><br /><br /><p><strong>You have others filters to play with</strong></p><p>now that the software has acceptance criteria for Complete backtest, In Sample (training) part and Out of Sample (trading) part you can easily define a way to get out this trap</p><p><span class="postimg"><img src="http://i.imgur.com/QrtKEcg.gif" alt="http://i.imgur.com/QrtKEcg.gif" /></span><br />All Data:<br />Maximum equity drawdown : 5%</p><p>In Sample: Minimum profit per day &gt; 30<br />OOS: Minimum profit per day &gt; 30</p><br /><p>I belive that R/DD its not a metric that you use by itself, You use it to improve somethint that is already good.</p>]]></description>
			<author><![CDATA[null@example.com (ViniQ)]]></author>
			<pubDate>Mon, 21 Aug 2017 01:15:52 +0000</pubDate>
			<guid>https://forexsb.com/forum/post/45740/#p45740</guid>
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			<title><![CDATA[Re: Acceptance Criteria Opinions Requested: R/DD]]></title>
			<link>https://forexsb.com/forum/post/45739/#p45739</link>
			<description><![CDATA[<p>Let me restate my question a bit...</p><p>2.5 or 3 would be fine for an IS period, where the generation has occurred. As we all know, we can find more than enough strategies that meet this simple requirement.</p><p>The OOS will be significantly weaker across the board. My thinking is that the OOS period would roughly reflect what would happen if we place a given EA on a demo account.</p><p>So to rephrase the question: For our plans to deploy 100s of EAs, after a full seven month testing period on a demo account, if you were pruning them ONLY using R/DD, what is the bare minimum value that you accept? Those with &quot;bare minimum&quot; values would be worthy of continued testing perhaps.</p><p>Now, a slightly different question: after this period, what is the minimum R/DD value that you would consider promoting an EA to a live account (for significant money), but this time using other stats as guides as well? Be realistic with regards to other stats, as you are not getting a R/DD of 0.5 and a Profit Factor of 2.0, for example.</p><p>Perhaps 2.5 or 3 is the answer; maybe we are generating enough super strategies that we can afford to toss out a boatload of OK, but not great possibilities.</p>]]></description>
			<author><![CDATA[null@example.com (qattack)]]></author>
			<pubDate>Mon, 21 Aug 2017 00:46:22 +0000</pubDate>
			<guid>https://forexsb.com/forum/post/45739/#p45739</guid>
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		<item>
			<title><![CDATA[Re: Acceptance Criteria Opinions Requested: R/DD]]></title>
			<link>https://forexsb.com/forum/post/45738/#p45738</link>
			<description><![CDATA[<p>I suggest a minimum of 2.5 or 3</p>]]></description>
			<author><![CDATA[null@example.com (Blaiserboy)]]></author>
			<pubDate>Mon, 21 Aug 2017 00:14:08 +0000</pubDate>
			<guid>https://forexsb.com/forum/post/45738/#p45738</guid>
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		<item>
			<title><![CDATA[Acceptance Criteria Opinions Requested: R/DD]]></title>
			<link>https://forexsb.com/forum/post/45735/#p45735</link>
			<description><![CDATA[<p>I am using an OOS period of ~7 months (IS ~15 months).</p><p>Minimum Number of Trades is 100 IS and 40 OOS.</p><p>What is the &quot;Minimum R/DD&quot; that may be &quot;acceptable&quot; in the OOS period.</p><p>Let me define &quot;acceptable&quot; in this case. This would be (close to) the minimum R/DD during this OOS that could occur for the strategy to still be considered for use in your portfolio pending further results or testing. For the lower R/DD values, this would be an &quot;inconclusive results&quot; conclusion. The strategies that fall within these range can be further considered or pruned altogether.</p><p>The reason I ask is because currently the Acceptance Criteria do not allow for a R/DD of less than 2. I think this may be a bit too restrictive for short-term periods and it this minimum should probably be dropped to 1 (maybe even less?). In general, R/DD gets larger with more data. A standard I&#039;ve seen used for validation is R/DD of 0.5 per year.</p><p>So for example, in my 7 month OOS period, my EA has made a total profit of $1000 while incurring a $1000 drawdown somewhere along the way, that seems that it may still be a potentially viable strategy with a R/DD of 1.</p>]]></description>
			<author><![CDATA[null@example.com (qattack)]]></author>
			<pubDate>Sun, 20 Aug 2017 21:38:29 +0000</pubDate>
			<guid>https://forexsb.com/forum/post/45735/#p45735</guid>
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