How are trading signal results statistics calculated?

How are trading signal results statistics calculated?

Contents

Hey there ProfitFarmers,

We wanted to explain how we calculate the overall signal results when we conduct our usual breakdown.

But before that…

How can I make use of the signal results breakdown?

By looking at the overall performance of all signals across a period of time it can give insights into how our underlying strategies are performing in recent market conditions. Patterns may emerge that can be investigated and tested to help increase your personal trading gains.

As a basic example. If a large number of signals are reaching target 4 it may be worth considering a strategy of selling all coins at target 4 and accepting a loss on the trades that don’t make it. For this to be viable the average gains on target 4 would need to outweigh the average losses suffered on losing trades.

By doing some digging it is possible to theorise all sorts of trade ideas that could either increase your profits or decrease your losses (making smart use of the breakeven stop-loss feature for instance).

If you don’t have time to monitor all of your trades closely (or don’t have technical analysis skills) it may make sense to use a general strategy based on the averages. Just keep in mind that if the market conditions change then your ideas may need to be adapted again.

Remember: Past performance is no guarantee of future results

The Calculations

Completed trades

  • This is the total number of signals added to the dashboard during the period.
profitfarmers-completed-trades

Winners

  • Signals that successfully reached at least 1 target.
profitfarmers-winning-trades

Losers

  • Signals that failed to hit any target and were stopped out.
profitfarmers-losing-trades

Breakeven

  • Signals that the system has closed early due to unusual market behavior, quality control or manual intervention. These are not a win or a loss, but generally a breakeven or small profit situation.
pf breakeven trades

Final target hit% spread

  • Count of how many signals reach each relevant target. % is of the total complete trades.
profitfarmers-final-target-hit-percentage-spread

Average Profit % per target

  • % Gain from entry to that specific target.

Top 10 trades

  • Highest gainers during the date range.
profitfarmers-top-10-trades-calculation-sample-image
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