Topic: Correlation

Second question regarding EA Studio smile

I see on Correlations that you can select a %. By default 96% I think. What is that Correlation? Monthly, Weekly, Daily...?

Sure is a silly question but I've been checking the documentation and searching on the forum and I didn't get this point clear.

Thanks again!

Re: Correlation

The Correlation shows how equally trade two strategies. It compares the Balance lines of the  strategies for the complete testing period.

A correlation coefficient of 1 means that two strategies have absolutely equal balance lines. It is possible to have strategies with different trading rules to rise very similar signals and we want to eliminate such cases.

When the Correlation analysis is on, it checks every strategy pushed to the Collection against all other included strategies. If the program finds that two strategies has correlation greater than the set value, it marks them as correlated. EA Studio removes the strategy with the the lower profit in such cases.

For example, a Correlation Coefficient of 0.96 means that the strategies differ by 4 percent.

Re: Correlation

Understood! Thanks for the answer