Monday, March 8, 2010

The Asirikuy Index : A General Performance Indicator

Yesterday while writting all the material which is added weekly to asirikuy and doing the weekly video additions I started to ask myself if there was any way in which I could measure the current performance of asirikuy as a whole. That is, I wondered if I could come up with a given statistical tool which would measure the performance of all the trading systems of asirikuy simultaneously. Then, after a lot of thinking time, I realized that there was a very simple solution to this measuring problem. Today's post will be dedicated to the communication of this new measurement tool called the Asirikuy Index.

So what is the deal with measuring Asirikuy perfomance as a whole ? In asirikuy we use many different trading systems which I have coded (partially or totally) and we have many live accounts currently running these trading systems on different brokers, settings, etc. We know how all these trading systems are working separately but there was no way for me to communicate the joint performance of all asirikuy systems to the world without disclosing the tests. Moreover, there was no way in which members could get an idea "as a whole" of how asirikuy was doing (all the joint trading systems) but they had to go over all the tests to know what the "global performance" was looking like.

Then I had the idea to come up with a number which could be a global indication of the equity production of asirikuy, a number which could be disclosed to everyone to give people a feeling of how asirikuy was doing. This number should be simple enough to give anyone a straight forward idea of how the tests on the website are doing in general - without needing access - while providing a tool for current asirikuy members to understand how asirikuy is performing as a whole. The number I came up with is what I call "the Asirikuy Index".

What is the Asirikuy Index ? It is a measure of the joint performance of all the live accounts traded on the website. The index is simply the sum of all the current equity percentage gains or loses of all the trading systems being traded. The index simply tells you "if you were trading your capital with the exact same systems within the same brokers and with the same number of accounts (of the same size) this would be your current profit/loss". It is a true measure of Asirikuy's performance as a whole and lets the world know how we are doing, something which may be something people want to know before joining the website.

For example, if asirikuy currently had only 3 live accounts and their results were +20, +12 and -25% then the asirikuy index would be 7% (20+12-25), meaning that if you had opened three accounts, funded them with equal amounts (for example, three 1000 USD accounts) , on the same brokers and with the same settings you would have gained 7% (of a single account's investment) up until now. Of course, the Asirikuy index could be manipulated by removing bad accounts from testing but I guarantee that this won't be done as if any accounts are removed from testing their current draw down will be kept as a part of the index, as it was a realized capital loss.

The current Asirikuy Index is 95.18% and it will be updated each week to reflect changes on the weekly profits and loses of all the live trading accounts. Of course, the measurement is not perfect and it has a lot of room for improvement but it is a very basic view of the overall performance of the trading systems. It also provides us with a glimpse of the effect of broker and system diversification since the index is the result of the combination of several brokers and expert advisors. In the future we will also be able to do cool things, like plotting the Asirikuy Index as a function of time !

If you would like to learn more about the trading systems used in Asirikuy and why I consider them to be long term profitable please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

No comments:

Daniel Fernandez's Expert Author Email Alerts
Sign up to receive email alerts of Daniel Fernandez’s latest articles from EzineArticles.com!

Email Address: