Everything explained, in one place.
A 0 to 100 score that shows whether a live strategy is still working right now, compared with what its backtest expected.
A 0 to 100 score that grades how good a trading strategy is on its backtest, after costs, and how well that is proven.
A 0 to 100 score that measures whether a live strategy is delivering what its backtest promised, after costs.
What one average trade is worth to you, after the wins and losses cancel out.
How much return a strategy earns for the losses it actually makes you feel.
The deepest hole a strategy has dug you into, peak to bottom.
Every trade measured against what you risked, where a full stop is always minus 1R.
When a strategy is tuned so tightly to the past that it only works on the past.
The data your strategy never saw while you built it, kept back to test if the edge is real.
Out of sample testing done over and over, rolling through your whole history instead of one split.
Reshuffling your trades thousands of times to see the range of outcomes luck could have handed you.
The gap between the price you expected and the price you actually got.
Broker-reported commissions and fees, plus components computed from an exact verified schedule.
The gap between how a strategy looked in testing and how it performs with real money.
Running a strategy on new market data in real time, before you risk real money on it.
The emotional state where you stop trading your system and start trading your feelings.
Trying to win back a loss right away by forcing trades you never planned.
Following your system the same way every time, especially when you don't feel like it.
Producing steady, repeatable results by trading the same way every time.
How much return a strategy earns for every unit of risk it takes.
How much and how fast a strategy's returns swing around.
How many dollars you make for every dollar you lose.
The share of your trades that end in a win.
How many units you trade, set so one loss costs what you decided in advance and not an unknown amount.
The chance your account reaches the level you call ruin before your edge has time to show up.
The percentage of your account you lose when one trade hits its stop.
The gain you need to get back to your last peak after a negative period.
How much a winner pays compared with what a loser costs.
The order that closes a losing trade at a price you (hopefully) picked before you entered.
The exit that closes a winning trade at a price you set before executing.
Borrowed buying power that lets you hold a position bigger than the cash you put down.
Running a strategy's rules over past prices to see how they would have done.
When a backtest uses information the strategy couldn't have known at the moment it traded.
Testing only on what is still around, and forgetting everything that went to zero.
Testing so many versions of a strategy on the same data that one of them wins by luck.