Once a trade system has been defined, the name of the system appears in the Add Study windows like any other study and can be displayed like any other study, using either a toolbar button or one of the Add Study windows.
The backtesting display appears as two windows: a top window showing the entry and exit points, and whether the individual trades are profitable, and a second window showing the amounts of the profits or losses for the system as a whole and giving various statistics related to the system.
81.Selecting Display Elements for the Backtesting Display
Users can select from among several items to display in a Trade system window.
Right-click in a Trade system window.
Select Modify Study Parameters.
This allows users to set Display, Enable and Time Range and Stats characteristics for a Trade System window.
82.Selecting Display Characteristics
Selecting Display from the initial Setup Study Parameters window allows you to set display characteristics for the following:
Sets the colors for the total and closed profit lines.
Sets the colors for the total and closed loss lines.
Sets the thicknesses for the total and closed display lines.
Sets the elements that will appear in the display. Choices include:
Lines and Arrows, Arrows only, Lines only, or None.
Sets the form for the total and closed displays. Choices include: Line or Histogram.
Accesses a second color window to select the colors for the trades in the system. (The arrows and the circles in the top pane).
Allows you to select the colors for the system trades.
Allows you to turn and off Entry Stop trades for this system.
Allows you to turn and off Entry Limit trades for this system.
Allows you to turn and off Exit Stop trades for this system.
Allows you to turn and off Exit Limit trades for this system.
Turns on and off individual display elements showing statistics associated with the trade system.
Total Trade Count
Total number of buys and sells indicated by the system.
Number of contracts long or short.
Percentage of the total trades that were long trades.
Average number of bars a trade is held.
Average gain for all trades.
Average gain for all winning trades.
Average loss for all losing trades.
Biggest winning trade.
Biggest losing trade.
Max Closed Draw
Biggest amount lost for any string of losing trades.
(Total gain for open and closed trades)/(Total loss for open and closed trades).
Percentage of profitable trades.
Remove To Neutral
How many of the most profitable trades would have to be removed to make the total profit zero. (Only relevant for profitable trade systems.)
Average compounded return divided by the average maximum retracement (AMR), where the AMR equals the average of the maximum retracement for each point and the maximum retracement equals the larger of the: maximum retracement from a prior equity peak or the maximum retracement to a subsequent low.
Applies a least squares linear regression line to the profit curve producing an average return, which is divided by the Standard Error.
Shows the number of bars in any trade divided by the current number of bars, which is the percentage of time (in terms of number of bars) the trade system has been in the position.
Notes: Stat values are only displayed when the vertical cursor is active.
Total Net Profit and Closed Net Profit are automatically displayed.
83.Selecting the Enable Choice
From the Enable section of the initial Setup Study Parameters window, select which trades to include in the bottom panel of the Backtesting/Trade system display. Choices include: All, Longs or Shorts.
Users can elect to display certain elements on a per trade or per contract or share basis. Elements that display differently on a per contract or share basis are:
Total Trade Count
The remaining elements display the same whether per trade or per contract or share is selected.
86.Printing a Trade system's Specifications
Like other applications within ProductName|variable=ProductName, the Backtesting/Trade system feature has a special printing capability. Printing in the Backtesting/Trade system application allows users to print all the choices they made when setting up the selected trade system.
Backtesting results can be displayed like any other study.
To display backtesting results for a Trade system
Click the Study button.
Click the Trade System tab.
Select the Trade system to be displayed.
Click the relevant Trade system button in the button column.
Click the Add button.
Click the Close button to close the Add Study window.
Elements of a Backtesting Display
Backtesting displays consist of two windows. One window shows the up and down arrows, dashed and solid horizontal lines and ovals indicating the trades specified by the system. There will be one set of these arrows, lines and ovals for each trade specified in the Trades for System section of Formula Builder for the relevant trade system.
The second display window indicates the success of the system over the designated bar range, giving various indicators of risk and profit.
The following table describes the meaning of each of the elements in the top window of the Backtesting display:
Red & blue dashed lines
Indicates losses are being incurred in the system.
Red & blue solid lines
Indicates profits are being made in the system.
Red & blue ovals
The end of the current buy or sell signal for the 2 systems.