BACKTEST & OPTIMIZATION.

The built-in optimizer allows you to optimize your trading strategies. Whether it’s the question of the correct parameters of indicators, the appropriate stop size or the determination of a reasonable price target – the optimizer provides the answer to these questions.

Using a heatmap that shows the results of different combinations in color, you will also learn how robust the trading strategy is. This minimizes the risk of the curve fitting (overfitting the strategy to the past).

Also, more than 50 key figures such as Drawdown, Sharpe Ratio and Profit Factor allow a detailed assessment of the quality of the strategy. Individual key figures can be created using the formula language “Equilla”.

OPTIMIZATION CREATES CLARITY AND GIVES SAFETY.

The figure shows a simple crossover strategy based on two moving averages with different period lengths. To optimize, the optimizer sets a bandwidth for each parameter. There are various variants available for the optimization, so that even large amounts of data can be analyzed.

IS YOUR TRADING STRATEGY ROBUST?

The results of the optimisation process are displayed in a color heatmap. It indicates which combinations of the two parameters generate positive and which negative results. By analyzing the result areas, statements can be made about the robustness of the trading strategy.

BETTER PERFORMANCE THANKS BACKTEST.

Conducting a backtest enables a precise analysis of the performance of a trading strategy. The following diagram shows an excerpt of the performance report in Tradesignal. In addition to numerous key figures like Drawdown and Return on Account, you will also receive a list of all trades and special tools for improving stops and price targets.

The right part of the figure shows the profit or loss in relation to the drawdown for each individual trade (drawdown = maximum loss during the holding period of this trade). If a rule is used which limits the drawdown to 15,000 USD, you may lose 3-4 winning trades (green triangles), but you also avoid numerous losing trades (red triangles). In addition, one sees very quickly possible “outlier trades”; like the four trades closed between $ 16,000 to $ 20,000 (green triangles).

TEST BEFORE YOU TRADE.

You would like to trade systematically? Test Tradesignal for free.

START TEST NOW.

dolor. elit. justo Nullam lectus nunc amet, elementum commodo