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--- eas-guide:acceptance-criteria [2019/03/05 13:34] – Balance Stability vini
+++ eas-guide:acceptance-criteria [2021/01/13 07:34] (current) – [Acceptance Criteria Metrics] Ilan Vardy
@@ Line 6: / Line 6: @@
 The **acceptance criteria** are widely used in EA Studio (in the [[eas-guide:generator|Generator]], [[eas-guide:reactor|Reactor]], [[eas-guide:validator|Validator]], [[eas-guide:optimizer|Optimizer]]). The acceptance criteria serve as a filter when a new strategy is generated or enters EA Studio. If the strategy passes it will be pushed to the [[eas-guide:collection|Collection]]. For example if acceptance criteria are enabled in the Optimizer it will not display strategies that do not pass the acceptance criteria.
+{{youtube>JPAkqFrcT9Q?medium|}}
+\\
 EA Studio applies the acceptance criteria to the backtest result stats. There are three zones of the backtest the acceptance criteria applies to (see the picture below)
@@ Line 18: / Line 20: @@
 If OOS is disabled only the first (Complete backtest) part will be used.
-{{: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%>
 If you find a strategy with the Generator that you like you can set the acceptance criteria so the generator will find similar strategies. Just go to the **Strategy > OOS Monitor** tab and see the results of the backtest. Then enter them in the acceptance criteria settings. For example if you liked a strategy that has a drawdawn of 8% in the acceptance criteria settings enter a number that is a little bit looser - 10%  for Maximum drawdawn etc. From now on the generator will only give you strategies that fit these criteria.
 </WRAP>
+Below is an example of a complete backtest, including In Sample, Out of Sample (OOS) and the Complete Backtest
+{{:eas-guide:oos-table-complete-backtest.png?nolink&600|}}
 ===== Acceptance Criteria Panel=====
@@ Line 38: / Line 45: @@
 ===== Acceptance Criteria Metrics=====
-{{ :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 ====
 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 ====
@@ Line 60: / Line 67: @@
 ==== 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 ====
@@ Line 69: / Line 76: @@
 ==== 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 ====
-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]]
@@ Line 81: / Line 88: @@
 ==== 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 ====
@@ Line 90: / Line 97: @@
 ==== 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 R - Squared value. You can read more about this performance metric at [[https://en.wikipedia.org/wiki/Coefficient_of_determination|Coefficient of determination article.]]
 ==== 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.
-==== min. Sharpe ratio ====
+==== Min. 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]].
-==== min. win / loss ratio ====
+==== Min. Win / Loss ratio ====
 The win/loss ratio is:

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