Trade Graphs | Trade Life

Modified on 2012/12/21 14:44 by Eugene — Categorized as: Visualizers

Shows the development of a set of trades generated by a trading system. Hence the name "Trade Life". The Y axis indicates the Profit/Loss of a single trade, and the Y axis shows the time in each trade (in bars).

The dropdown lists on the top of the chart allows to target a specific subset of trades by selecting:

Trade type: Total, Long or Short. "Total" is simply "all trades".
Trade outcome: All, Winning or Losing. "All" plots all the trades generated by a system while other options allow you to analyze the trade behavior more selectively.
By instrument: All instruments, or just show trades in a particular instrument.

By manipulating the options, you can answer questions like:

Is there a difference between winners and losers?
Is the behavior of short and long trades similar or they have different patterns?
How difficult it is for the winners or the losers to take off in any direction?
Are there more winners taking off higher than losers going south?
Maybe after some point in time, winners have a tendency to stall? and etc.

These charts can be used in conjunction with the Wealth-Lab's built-in MAE/MFE and Profit Distribution charts. For more insight on the "trade life" charts, take a look in Thomas Stridsman's classic book "Trading Systems That Work".