Home Forums Ready-to-use Robots Top 10 EAs Properties & Settings Reply To: Properties & Settings

#267430
Marin Stoyanov
Keymaster

Hi, let me address all the properties one by one.

R-Squared is a statistical measure that can be useful to gauge how the strategy’s performance is influenced by broader market movements. An R² of 0 means that none of the performance can be explained by the index used for comparison. An R² of 50 for example, suggests that approximately 50% of the strategy’s performance can be explained by fluctuations in the benchmark. Please check this post and the linked video to learn about R-Squared (this is a complex statistical measure and it’s not that simple to explain so better read the post and watch the video).

Return to DD (Return to Drawdown) is a measure that helps evaluate the risk-adjusted return of the trading strategy. This ratio is calculated by dividing the total return by the maximum drawdown experienced during the observed period. For example a ratio of 0.99 suggests that for nearly every 1% of drawdown experienced, the strategy generated an equivalent increase in value. With another example, if Return to DD is 3.57 it indicates that the strategy earned about 3.57 times the maximum percentage decrease experienced in account value. This high ratio is a positive sign, showing that the returns significantly outweigh the risks taken (measured by drawdown).

Profit Factor is the ratio of gross profits to gross losses over the specified period. It helps to understand how well the strategy performs in terms of profitability.

Regarding what would be good values, we don’t put that much attention to the actual values of the above parameters. The way we use the app is just to pick the top 3/5 for from the weekly/monthly charts and trade with them. Then we check the performance on a daily basis and make amendments to the strategies we trade with if there are new top performers in the top 3/5 for the period we’re looking at. This is the system we follow and it works for us but this is not a recommendation or the only way to do it. Some traders might use the above properties to select their strategies or might have their own way to manage the EAs.

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