Euler wrote: ↑Thu Oct 22, 2020 11:37 amI've never really concerned myself with return on turnover, though I do measure it. On pre-off footy I'll use large stakes but can only ever return small amounts unless the market is spectacular. So I'm more concerned about the risk I'm taking. If there is little risk, I'll happily use much large stakes and accept a lower return.
But the return on turnover varies wildily between markets and strategies. There is no one answer that is correct and everybody will be wildly different. I don't think there is much you can infer from that.
Thanks Peter....at last a post with detail but there was more to infer from your post than what seems apparent. Your post indicates that you take volatility seriously which I know your philosophy is geared around it. The level of risk is connected to volatility and position sizing so dollar volatility plays a part but these metrics differ in a strategy to strategy basis and even a market to market basis as you well know. However a return on turnover is a derivative of these components and so in the absence of further data, you can only take a piece of the puzzle and back engineer, as for what Derek said about walking before you can run.....well let's just say I walk very well in that regard and sometimes in financial markets one has to do the opposite of what is obvious and work not from the beginning but from further down the line