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eas-guide:acceptance-criteria [2019/03/05 13:39] – R - Squared vinieas-guide:acceptance-criteria [2021/01/11 10:52] Ilan Vardy
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 {{:eas-guide:acceptance-criteria-page.png?nolink|Acceptance Criteria Page}} {{:eas-guide:acceptance-criteria-page.png?nolink|Acceptance Criteria Page}}
  
-The acceptance criteria work based on the strategy backtest. The strategy backtest results can be seen in the **Strategy > OOS Monitor** tab or in the **Strategy > Report** tab. We recommend using the OOS Monitor since there you can see the three distinct zones and their backtest stats.+The acceptance criteria work based on the strategy backtest. The strategy backtest results can be seen in the **Strategy > OOS Monitor** tab or in the **Strategy > Report** tab. We recommend using the OOS Monitor because there you can see the three distinct zones and their backtest stats.
  
 <WRAP center round tip 60%> <WRAP center round tip 60%>
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 {{ :eas-guide:acceptance-criteria-metric.png?nolink |}} {{ :eas-guide:acceptance-criteria-metric.png?nolink |}}
  
-==== Max./Min. Average position length ==== +==== Min. / Max. Average position length ==== 
-Average position length where is expressed in bars. +Average position length expressed in bars. 
  
-==== Max./Min. Bars in trade % ==== +==== Min. / Max. Bars in trade % ==== 
-Bars in trade where is expressed as percentage.+Bars in trade 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 ==== +==== Min. / Max. 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 maximum number of trades to make sure the strategy is not over-optimized or to trade less frequently 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 at 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 ====
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 ==== 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 profi, expressed as a percentage amount.
  
 ==== Max. Stagnation days ==== ==== Max. Stagnation days ====
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 ==== 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 will this lead 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.+Balance Stability is a performance metric developed 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]] [[https://forexsb.com/forum/topic/7645/balance-line-stability/|Forum Post Link]]
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 ==== 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.+The 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 ====
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 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.
  
-==== min. Sharpe ratio ====+==== Min. Sharpe ratio ====
 The strategy should have this or a higher [[http://www.investopedia.com/terms/s/sharperatio.asp|Sharpe ratio]]. The strategy should have this or a higher [[http://www.investopedia.com/terms/s/sharperatio.asp|Sharpe ratio]].
  
-==== min. system quality number ====+==== Min. system quality number ====
 The strategy should have this or a higher [[http://www.vantharp.com/tharp-concepts/sqn.asp|System Quality Number]]. The strategy should have this or a higher [[http://www.vantharp.com/tharp-concepts/sqn.asp|System Quality Number]].
  
-==== minwin loss ratio ====+==== MinWin Loss ratio ====
  
 The win/loss ratio is: The win/loss ratio is: