What is a good algo – criteria of a good algo

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11/02/2023 at 4:24 PM #223154 quote
jmf125
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I would be interested to hear what others consider as minimum criteria for an algo to be considered as a “good” strategy/algo.
The criterias apply for the OOS or live period (minimum 1 year) i.e after the strategy is established and the algo has gone live or in demo.
Below are what I consider the minimum criterias
First of all, I will determine the minimum capital required for running the algo in such a way that I will have a 0% chance of risk of ruin (meaning if you start with unlucky string of losing trades you do not want to run out of capital, just google risk of ruin if you are not familar with the concept of 0 % of risk of ruin).

Basic Criterias for considering the algo (ideally only for OOS):
1. Profit > 30 %
2. Profit / Drawdown> 1.25
3. Annual Profit > 1 K
4. Consecutive Losses < 3 or win rate > 80 %
11/03/2023 at 4:26 PM #223177 quote

robertogozzi
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These topics sound quite alike https://www.prorealcode.com/topic/is-this-system-to-good-too-be-true/ and https://www.prorealcode.com/topic/what-is-considered-good/.

jmf125 thanked this post

11/03/2023 at 8:48 PM #223189 quote

jmf125
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Thanks Roberto will tag along the second link.
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What is a good algo – criteria of a good algo

General Trading: Market Analysis & Manual Trading

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jmf125 @jmf125 Participant

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This topic contains 2 replies,
has 2 voices, and was last updated by jmf125
2 years, 10 months ago.

Topic Details

Forum:	General Trading: Market Analysis & Manual Trading
Language:	English
Started:	11/02/2023
Status:	Active
Attachments:	No files

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