Hello Everyone,
I was examining a trading system found on this site, which trades the Break out of the NY open. I was testing out the trading system using the MT4 Strategy Test, and I was trying to optimize the system, using my StopLoss, Profit Target and what I define as a PreSessionRange (difference between the high and low for the last two hours). I’m doing this for my own knowledge, I will trade it manually, but using the Strategy Test to get an idea for some parameters.
The SL and TP that maximized my Profit had a did not have the highest profit factor. Results below:
$1000
1% Risk
Trading Micro Lots
Profit Profit factor Expected Payoff Draw Down ($) Draw Down (%)
216.43 2.72 8.32 94.36 8.60
212.13 2.99 8.16 48.30 4.47
So which parameters would one choose, in general? One with the greater Profit factor or the one that years the greater profits?