Traders are often keen to find out which is the strongest market available to them and to do this they often look at comparative capacity to generate effective trades via such as some type of relative strength comparison. However, your results will tell you a lot about how both a given market is performing and how your system is performing within that market.
The table below is a snip from my historical results.
The two columns to take note of are ISLP and TS. A market that is trending well will allow stops to move from their initial point to trailing with a reasonably high degree of frequency. If we look at a comparison between the S&P/ASX300 and the NASDAQ 100 we can see that 61% of trades in the S&P/ASX300 were exited at their ISLP whereas 46% of trades on the NASDAQ 100 were exited at their ISLP. The inference from this is that stock trades within the NASDAQ 100 were more energetic than those within the S&P/ASX300. You can infer from this that the NASDAQ 100 is a more profitable or fertile trading environment and more attention should be paid to this market.
In summary, the NASDAQ 100 is a stronger market.
Thanks for the transparency with your own results, Chris.
I love this table of comparison. Did you have to manually plug all the data into your own spreadsheet calculation, or is there a program/platform that can do it automatically for you?
I use XL because it puts me in touch with the data. There are some programs such as Edgewonk that may do it.
That is one interesting table.
Clearly shows the churning of the Russell and then the ASX with more trades taken and more stop outs.
Very interesting.
I wonder whether the trades exited at TS were more profitable in the Nasdaq or the ASX ????
With regards to the price and percentage gain of the winners.
More profitable on the NDX