Trading Strategy Analysis
- How to determine the stability of a trading strategy?
- What is the win rate of a trading strategy, and is higher always better?
- What is the backtesting period of a trading strategy? What is the ideal length of a backtesting period?
- What is Maximum Drawdown? What can we learn from a trading strategy with a Maximum Drawdown of 20%?
- What is the profit factor and what does a value greater than 1.5 mean?
- What is the Sharpe Ratio? What does it mean if its value is greater than 2?