API ChartStyles Community Components Community Indicators IndexDefinitions Knowledge Base Misc Optimizers PosSizers Providers Standard Indicators TASC Traders Tips TASCIndicators Visualizers |

**Main Page**- Category List
- Knowledge Base
- Traders Tips
- Indicator documentation
- Addin examples

Advanced Search »

E-Ratio takes the MFE/MAE analysis a step further. In addition to the static value found on the Performance+ tab, this visualizer plots the value dynamically i.e. on a bar by bar basis.

E-Ratio measures how much a trade goes in your favor vs. how much a trade goes against you. The number of bars since entry is on the X axis, the average E-Ratio is on axis Y. The higher the number the better your trading edge is supposed to be (if it's a positive value). E-Ratio is normalized for volatility to be applicable across different markets.

### Calculation

T = total trade count
ATR = 14-bar ATR value
For a Position on a given bar, E-Ratio = (current MFE as of bar / ATR) / (current MAE as of bar / ATR)

1. On each bar X (where X varies from 0 to the longest trade duration): a) Sum up the rolling E-Ratio of trades held for X bars or longer b) Increment the number of trades held for X+ bars

2. Rolling E-Ratio = 1a (the sum of e-ratios) / 1b (how many trades were held for at least X bars)

### Additional sources

E-Ratio measures how much a trade goes in your favor vs. how much a trade goes against you. The number of bars since entry is on the X axis, the average E-Ratio is on axis Y. The higher the number the better your trading edge is supposed to be (if it's a positive value). E-Ratio is normalized for volatility to be applicable across different markets.

E-Ratio chart |

1. On each bar X (where X varies from 0 to the longest trade duration): a) Sum up the rolling E-Ratio of trades held for X bars or longer b) Increment the number of trades held for X+ bars

2. Rolling E-Ratio = 1a (the sum of e-ratios) / 1b (how many trades were held for at least X bars)

- https://www.buildalpha.com/eratio/
- http://www.automated-trading-system.com/e-ratio-trading-edge/
- https://www.dukascopy.com/fxcomm/fx-article-contest/?Measurement-Of-Potential-In-Trading=&action=read&id=1861