View Trading Strategy Results

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Summary: What trading results are given and how to view them.

About

There are many results that are given when running a strategy. These results can be seen in the google chrome browser with tables and graphs or within the CLI itself. Lets break down the result categories and show an example output from within the broswer.

Results Categories

Result Explanations

Most of the results are explanatory. We will cover two that are not so explanatory.

1. Sharpe ratio is a number to gauge the risk / reward ratio. I dont want to get too into how its done and how BacktestJS does this math as its a bit complicated but i can say a score from 1 to 1.99 is considered good, from 2 to 2.99 is considered very good, and greater than 3 is considered excellent.

2. Max drawdown amount / percent represents the highest loss that could have happened. Lets represent this better with an example.

You start with $100
You drop to being worth $80
Your max drawdown amount is now $20 and max drawdown percent is 20%
You end up being worth $200
Than you drop back down to being worth $100
Your max drawdown amount is $100 and max drawdown percent is 50%
You are now worth $1,000
Then drop down to $800
Max drawdown amount is now $200 but max drawdown percent is still 50% even though you are 8x more profitable ($100 to $800)