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eas-guide:acceptance-criteria

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eas-guide:acceptance-criteria [2019/03/05 13:10] – metrics updated vinieas-guide:acceptance-criteria [2019/03/05 13:34] – Balance Stability vini
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 ===== Acceptance Criteria Metrics===== ===== Acceptance Criteria Metrics=====
  
 +{{ :eas-guide:acceptance-criteria-metric.png?nolink |}}
  
-{{:eas-guide:acceptance-criteria-metrics.png?nolink|}} +==== Max./Min. Average position length ====
- +
-==== max./min. average position length ====+
 Average position length where is expressed in bars.  Average position length where is expressed in bars. 
  
-==== max./min. bars in trade % ====+==== Max./Min. Bars in trade % ====
 Bars in trade where is expressed as percentage. Bars in trade where is expressed as percentage.
  
-==== max. consecutive losses ====+==== Max. Consecutive losses ====
 How many consecutive losing trades can the strategy have. How many consecutive losing trades can the strategy have.
  
-==== max./min. count of trades ====+==== Max./Min. Count of trades ====
 Set the maximal number of trades to make sure the strategy is not over-optimized or to trade less often to avoid losing money on the spread. Set the maximal number of trades to make sure the strategy is not over-optimized or to trade less often to avoid losing money on the spread.
 This is important for the Generator and Optimizer in order for their backtest results to be trustworthy. If there are too few trades, the parameters below might have good-looking values, but in the same time harm your profits. For example if you have a win/loss ratio of 1.0, it is great, but if the trade count is only one, this strategy not one you can rely on. This is important for the Generator and Optimizer in order for their backtest results to be trustworthy. If there are too few trades, the parameters below might have good-looking values, but in the same time harm your profits. For example if you have a win/loss ratio of 1.0, it is great, but if the trade count is only one, this strategy not one you can rely on.
  
-==== max. equity drawdown ====+==== Max. Equity drawdown ====
 The maximum drawdown is the largest cumulative decline in a equity curve. The maximum drawdown is the largest cumulative decline in a equity curve.
  
-==== max. equity drawdown % ====+==== Max. Equity drawdown % ====
 The account equity should not go below the given percent value. The account equity should not go below the given percent value.
  
-==== max. stagnation % ====+==== Max. Stagnation % ====
 Set the maximum amount of consecutive days in which the strategy is not making profit. Set the maximum amount of consecutive days in which the strategy is not making profit.
  
-==== max. stagnation days ====+==== Max. Stagnation days ====
 Set the maximum amount of consecutive days in which the strategy is not making profit. Set the maximum amount of consecutive days in which the strategy is not making profit.
  
-==== min. average HPR % ====+==== Min. Average HPR % ====
 Set the minimum average Holding Period Return in percent. Set the minimum average Holding Period Return in percent.
  
-==== min. backtest quality ====+==== Min. Backtest quality ====
 The EA Studio backtesting engine is very fast because it operates with bar data. Very rarely however this leads to ambiguities in trade execution. For example if there are protections like Stop Loss or Take Profit it might be important if the price went to bar high or bar low price first. For such bars the backtest engine cannot tell which happened first so it marks the bar as "ambiguous". This happens rarely but this criterion allows you to require a high percentage of the bars to be unambiguous to consider the strategy good enough. The EA Studio backtesting engine is very fast because it operates with bar data. Very rarely however this leads to ambiguities in trade execution. For example if there are protections like Stop Loss or Take Profit it might be important if the price went to bar high or bar low price first. For such bars the backtest engine cannot tell which happened first so it marks the bar as "ambiguous". This happens rarely but this criterion allows you to require a high percentage of the bars to be unambiguous to consider the strategy good enough.
  
-==== min. balance stability ====+==== Min. Balance Stability ==== 
 + 
 +Balance Stability is a performance metric develop to be as a combination of R-Squared, correlation and better scaling for a strategy.
  
 +[[https://forexsb.com/forum/topic/7645/balance-line-stability/|Forum Post Link]]
  
-==== min. months on profit % ====+==== Min. Months on profit % ====
 Shows how stable the profits are over time. Imagine we have a strategy with minimum months of profit equal to 60%. This means that if the strategy backtest was for 10 months of trading we can see that the strategy was profitable for 6 months and in the other 4 months it didn't make any profits. Shows how stable the profits are over time. Imagine we have a strategy with minimum months of profit equal to 60%. This means that if the strategy backtest was for 10 months of trading we can see that the strategy was profitable for 6 months and in the other 4 months it didn't make any profits.
  
-==== min. net profit ====+==== Min. Net profit ====
 he strategy should make at least the set amount in your account's currency. Useful for the whole backtest as well as the Out of Sample part. he strategy should make at least the set amount in your account's currency. Useful for the whole backtest as well as the Out of Sample part.
  
-==== min. profit factor ====+==== Min. Profit factor ====
 Set the minimum profit factor i.e. gross profits divided by gross losses. Set the minimum profit factor i.e. gross profits divided by gross losses.
  
-==== min. profit per day ====+==== Min. Profit per day ====
 The strategy should make at least this amount per day in your account's currency. The strategy should make at least this amount per day in your account's currency.
  
-==== min. r - squared ====+==== Min. R - Squared ====
 The strategy should have at least this this [[https://en.wikipedia.org/wiki/Coefficient_of_determination|profit/Coefficient of determination article]] r squared value. The strategy should have at least this this [[https://en.wikipedia.org/wiki/Coefficient_of_determination|profit/Coefficient of determination article]] r squared value.
  
-==== min. return / drawdown ====+==== Min. Return / Drawdown ====
 The strategy should have at least this this [[https://www.investopedia.com/terms/r/return-over-maximum-drawdown-romad.asp|profit/drawdown]] ratio. The strategy should have at least this this [[https://www.investopedia.com/terms/r/return-over-maximum-drawdown-romad.asp|profit/drawdown]] ratio.
  
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