When backtesting indicators, which do you prefer? The indicator and/or setting with the highest winning percentage, or the one with the highest net profit or profit factor (if you use tradingview)?
for me, best would be net profit per trade, but would also look for a solid win percentage as well
1 Like
Ideally they’re both good, but what about when you have an indicator that wins 55% of the time with a 20% net profit on one setting, and one that wins 47% of the time with a 30% net profit. Which one is better?
1 Like
You must consider also losses and draw-down plus the probability of wipe-out - i.e. risk - as well as profit.
1 Like