System Quality Number Trading
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System quality number trading. 1 6 1 9 poor but tradeable 2 0 2 4 average. This data should not be deemed reliable until 30 trades. Van tharp developed this formula for trading systems. Score 1 6 1 9 below average but trade able 2 0 2 4 average.
Regarding the sort in fsb here is a guide to the values in system quality number van tharp the sqn number can be interpreted as your overall trading grade. The july 2019 system quality number report the sqn report by van k. Later he found out that the sqn indicator is a very powerful to measure the trendiness. Typically a market sqn score over 1 47 is strongly bullish and a score below 0 7 is very weak.
He applied the sqn formula to the daily percent price change of a stock or an index it proved to be an excellent measure of the quality of an trend. The system quality number as developed by dr van tharp can be used to measure the quality of your trading system. The market sqn score uses the daily percent change for input over a 100 day period. In this video i briefly go over how the sqn is measured and how you can use it.
Van tharp s system quality number sqn metric. Stop prices must be entered for each trade to be accurate. It also makes an adjustment for the number of trades involved.