# Metrics to apply to trading strategies [closed]

Other than average gain, average loss, and accuracy, what other metrics might be helpful if you were to attempt a new trading strategy? Is there any oddities of mathematics that you would take into consideration?

I understand this is a pretty generic question, just looking for different viewpoints on it. Please keep your answers productive, the back story on this is pretty vast, so that's why I'm keeping it simple, it's not just rambling, so feel free to ask questions to help me better pinpoint things.

Thanks!

• Sharpe ratio is a standard metric to evaluate strategies Nov 5, 2020 at 13:16
• Tyvm! I'm not a finance guru, just good with analysis of patterns. Reading about that now, any others you might suggest? Again, tyvm!!! Nov 5, 2020 at 13:19
• You know the story of the man who drowned in a lake with an average depth of one inch? In addition to the "average loss" it would be interesting to report some stats about the largest losses, for example the 5% quantile of the losses (the loss such that 1 out of 20 losses exceed this value. Sometimes called the 5% VaR). Nov 5, 2020 at 13:32
• Sorry, I guess I should have said average drawdown on trades? Not sure if those are interchangeable terms. Is >5% VaR considered a losing strategy on average? I see the bell curve model on wiki seems to suggest that? I don't use stops to avoid the stop-loss hunting spikes and never hold overnight, so I think that eliminates most major catastrophic events under the probabilities mentioned for VaR? Tyvm btw! Definitely more to think about! Nov 5, 2020 at 13:52