SQN (created by Van K Tharp)
System Quality Number (SQN): SQN = Squareroot (# Trades) * Avg R / Std Dev R
The SQN number can be interpreted as your overall trading “grade”. This data should not be deemed reliable until (> 30 trades). Stop Prices must be entered for each trade to be accurate.
Score: 1.6 – 1.9 Below average, but trade-able
Score: 2.0 – 2.4 Average
Score: 2.5 – 2.9 Good
Score: 3.0 – 5.0 Excellent
Score: 5.1 – 6.9 Superb
Score: 7.0 – Keep this up, and you may have the Holy Grail.
The calculation, use, and interpretation of the SQN is based on Van Tharp’s development of SQN. Only use if you are familiar with, and a proponent of Tharp and his teachings.
Posted in: Trading Terminology (general product terms)