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Trade Graphs | Trade Life


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".

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Used under license from FMR Corp. Copyright 2008 FMR Corp. All rights reserved.

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