Articles

Learn how open trades can affect an equity curve, why unrealized gains and losses matter, and what to check when comparing backtest reports.

Learn what win rate means in a trading backtest, how it is calculated, why it can be misleading, and which other metrics provide useful context.

Learn how to read an equity curve in a trading backtest, understand drawdowns and fluctuations, and see why the chart needs context.

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.

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.

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.

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.

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.

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.