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RANKING CALCULATION
 Post subject: RANKING CALCULATION Post rating: 0   New post Posted: Wed 09 Mar, 2011, 13:35 

User rating: -
it is clear, that the popularity issue which is actually discussed needs to be fixed. my example right now shows that clearly. after wrecking 70% of my balance due to non existing money management with a few trades, i managed to recover now to only 35% loss. i managed to gather quite good pips at the recovery. now i am in the TOP30, although i have lost 35% of my starting balance. perhaps the popularity calculation can stay like it is and only the weight of the popularity points calculating the rank should be changed. like this there would be still a motivation to "communicate" (if you think these meaningless comments are communication) but the effect on the outcome and the rank would not be that great. it would still have an effect but not that big.

same with the balance. the balance is not important for an efficient and good trading style. we see in this contest what happens. some traders trade the maximum position risking much to much and if they get lucky, they gather huge balances with which a reasonable trader with a good money management just cant cope! so, the motivation to have such exorbitant balances should be minimized and the motivation for good and sensible trading should be raised! huge balances simply dont have nothing to do with good trading! a good trading strategy means the constant win of pips!

the pip rank is the most important to define the quality of a trader and the efficiency and the quality of his trade entries and exits. the balance is only a calculated number that results out of a factor depending to the position size. so my proposal would be to weigh in the pip performance much more than than balance and also much more than popularity. reducing the effect of the balance would also help to avoid gambling, because the risk to lose pips would be higher than the ranking effect of a fast growing balance. that could lead to more reasonable position sizes and more thoughtful trades! generating constantly pips is much more difficult than tripling up the account with a few lucky trades. my proposal would be: balance should count twice as much as popularity rank and the pips should count twice as much as the balance! this solution would be easy to implement in the existing platform.

are there any thoughts on the dukascopy developers side to make changes in such a direction?


 
 Post subject: Re: RANKING CALCULATION Post rating: 0   New post Posted: Fri 11 Mar, 2011, 11:02 

User rating: -
a summary of my proposal for a new ranking calculation model:

weight of the three parameters:

popularity: 14%
balance: 26%
pip performance: 60%

if popularity or balance is in negative terrain, both should be set to zero. setting the popularity to zero is in this calculation model not necessary because it wont have that strong effect anymore. why not letting the community efforts take effect in the lower ranks?

as far as i have understood it, dukascopy wants a swing trade oriented trading style. to achieve that they should also reflect this in the life ranking by adding the factor REALTIME RISK/REWARD ratio. this could be easily implemented and for example be a factor that gets multiplied with the points calculated with the above mentioned system. a fitting formula for how the factor gets combined to the points must be found in an a evaluation process.

the realtime risk/reward ratio itself should be calculated as following:

entered SL to realized TP or entered TP to realized SL. closing the trade earlier than defined when entering the position would effect in both cases the value negatively!

right now, the risk/reward ratio on its own is useless because it can only make a point in combination with the share of closed by market orders paramater in a manual evaluation process. most of the scalpers enter with their entries huge SL and TP values in a positive risk/reward ratio and close their trades after a few pips without effecting the ratio negatively.

having a realistic risk/reward-factor in the live calculation process could help to change the trading style to the way dukascopy wants it to be: swing oriented and also with more meaningful SL and TP values!


 

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