Analyses - Dashboard

The dashboard shows a summary and performance metrics for the selected set of trades.

Donuts

The donuts visualize some metrics and shows you the quantity of the different assets traded.

Performance Metrics

Long / Short Trades

The evaluation shows whether you are more on the long or short side with your trading. Many trades tend to trade significantly more on one side. In principle, however, it makes no difference and one should ask why he does not want to take advantage of the opportunities of the other direction.

Winner / Looser Trades

In order to trade profitably, the pure number of winners does not necessarily have to be higher than the number of losers. Nevertheless, the key figures can reveal deficiencies.

Profit-Factor

The Profit Factor compares the average losing and winning trade and builds a ratio.

For example, if your winning trade is on average $100 and your average loser is $50, your Profit Factor is 2 ($100 / $50).

Gain to Pain Ratio

The Gain to Pain (GtP) ratio provides information about the realized trading performance, in comparison to the risk that the trader took to achieve that performance. 

It is very similar to the Profit Factor, but the Profit Factor just compares the average winning trade and the average losing trade. The GtP ratio, though, compares the return relative to the risk.

A trader can 'simply' realize a higher return by taking larger trades and, therefore, increasing the risk. But the GtP will penalize higher risk levels and show it in the result.

When comparing two trading strategies, the one with the higher GtP ratio has taken less risk to achieve the realized return. The lower the GtP, the more risk the trader has taken. 

The formula is: GtP = (Return of all trades) / (Return of losing trades * -1)

Expectancy

The expectancy is best used as a long-term metric and it says how much, on average, each trade is worth.

For example, let’s say you made 100 trades and won $5,000 over those 100 trades. The expectancy, in that case, is $50 ($ 5,000 / 100). This means that each trade is worth $50 over the long-term.

How to use it in your trading: The expectancy, for one, is a confidence builder. If you see that your system has a positive expectancy, it tells you that, all things being equal, you have a high likelihood of coming out ahead even though you might experience losing streaks and drawdowns.

Calmar Ratio

The Calmar Ratio is another risk metric, looking at the risk component of a trading strategy in a different way.

The Ratio uses the maximum drawdown as the risk component.

The formula is: (Sum of all returns) / (Max Drawdown)

When comparing two strategies with the same return, the one with the worse drawdown will have a lower Ratio.

Average Winner / Loser

The evaluation of the average winner and average loser sizes a trader can be used in numerous ways:

• Make sure your average winners are larger than your average losses
• Identify outliers. This is especially important if you notice outliers in your losing trades where single losses are significantly larger than the average. You must investigate those scenarios.
• Finally, when your average winner and loser numbers are very close, it could also pose issues because account growth is harder to achieve. Preferably, you want your winners to be (significantly) larger than your losers. If your average figures are very close, you need to check your expectancy to make sure the expectancy is significantly larger than 0. Otherwise, your account volatility may be extreme.

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