Entry and Exit efficiency

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Entry and Exit efficiency

Postby Kevin_in_GA » Sun Jan 11, 2015 5:51 pm

How are these determined, and can one use these in either a One-Click or Autosearch?

Thanks,

Kevin
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Re: Entry and Exit efficiency

Postby Overload » Mon Jan 12, 2015 9:31 am

I assume you're talking about the Entry, Exit and Total Efficiency charts in the Detailed Analysis? If so, there are more detailed descriptions in the Help under "Viewing Results > Second Level - Detailed Analysis > Charts". But here's at least a recap of the calculations for Long Positions:

All calcuations are made based on prices only from the time the position is entered to the time the position is exited.

Entry Efficiency:
Highest price minus the entry price, divided by highest price minus the lowest price.

Exit Efficiency:
Exit price minus the lowest price, divided by highest price minus the lowest price.

Total Efficiency:
Exit price minus the entry price, divided by highest price minus the lowest price.

As you can see, the numbers just identify the largest high/low range while the position is held and use that as the perfect efficiency. The closer the Entry Price is to the Low Price, the better the Entry Efficiency. The closer the Exit Price is to the High Price, the better the Exit Efficiency.

Because the efficiency can't be determined until the position is exited, it can't really be used for Entry and Exit triggers. And there aren't currently "average efficiency" numbers in StrataSearch to make them available for use in system evaluation. But the one performance value that has some similarities is the Average Position Maximum Drawdown Percent. If the AvgPosDrawDPct is zero, it will be similar to having perfect Total Efficiency.

Pete
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