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Articles
Plain-language guidance on backtesting metrics, risk, sample size, and interpreting results more carefully.
Profit-to-Drawdown Ratio: What It Tells You About a Backtest
Profit-to-drawdown ratio compares reported profit with maximum drawdown. Learn what it measures, why it can mislead, and how to read it in context.
Lou Musto
Aug 123 min read
Net Profit: What It Tells You About a Backtest
Net profit shows the overall gain or loss reported across a backtest. Learn what it measures, why it can be misleading, and how to read it in context.
Lou Musto
Aug 113 min read
Average Profit per Trade: What It Tells You About a Backtest
Average profit per trade shows the average net result produced by each completed trade, but the number needs context. Learn what it measures, where it can mislead, and what to review alongside it.
Lou Musto
Aug 103 min read
Trade Count: What It Tells You About a Backtest
Trade count shows how many trades contributed to a backtest result, but the number needs context. Learn what it measures, where it can mislead, and what to review alongside it.
Lou Musto
Aug 103 min read
Maximum Drawdown: What It Tells You About a Backtest
Maximum drawdown shows the largest decline in a backtest, but the number needs context. Learn what it measures, where it can mislead, and what to review alongside it.
Lou Musto
Aug 93 min read
Profit Factor: What It Tells You About a Backtest
Profit factor can summarize the balance between gross profits and gross losses, but the number needs context. Learn what it measures, where it can mislead, and what to review alongside it.
Lou Musto
Aug 83 min read
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