Hi guys, I just received this email from the team at MyFxbook. They continue to innovate the Fx community!
As the leading social forex community and forex account analysis service, we’re always looking to develop new and unique features to be used by our members. Some of our features even create new industry standards, after seeing many of our competitors copy it to the letter (for example, account verification process and system tags).
The recent innovation we’ve been working on is a ranking formula for our AutoTrade systems. Up until now, systems were ordered by daily return, however a higher daily return doesn’t necessarily mean a better trading system (it may be high simply due to an excessive risk). We’ve been researching the different parameters of a trading system for the past few weeks to answer the following question:
Which system has the highest return with the lowest risk, while having the most consistent growth curve?
We’re glad to say we’ve developed such a formula! Unlike other similar services having black-box “proprietary” ranking algorithms, transparency is one of our biggest concerns here at Myfxbook and therefore we are happy to show you the exact formula:
Gain / (Drawdown X Standard Deviation)
How to read the above formula?
- When a system’s gains increase, ranking increases and vice versa.
- When a system’s drawdown increases, ranking decreases and vice versa.
- When a system’s standard deviation increases , ranking decreases and vice versa.
If you have any suggestions or comments for improvements, do let us know.
You can open a free AutoTrade demo account here: http://www.myfxbook.com/autotrade
On the same note of new features, we’re also excited to announce the addition of a new widget – the toolbar widget! You can now add the same toolbar as in Myfxbook, to your website, which shows calendar events, streaming news and rates!
To add the toolbar widget to your website, simply use the following code:
Myfxbook Toolbar
<!– myfxbook.com toolbar widget – Start –>
<script type=”text/javascript” src=”http://widgets.myfxbook.com/scripts/toolbar.js”></script>
<!– myfxbook.com toolbar widget – End –>
<script type=”text/javascript” src=”http://widgets.myfxbook.com/scripts/toolbar.js”></script>
<!– myfxbook.com toolbar widget – End –>
