Stock Predictor guide

Understanding Trading Strategy Results

Interpreting the results correctly is as important as running the strategy. Open the Trading History tab to see them.

Compare with buy and hold

Compare the strategy’s cumulative performance (all proceeds of each sale reinvested) or summarized performance (a fixed amount invested each time) with buy and hold. A strategy that beats buy and hold may be worth using. Remember commissions, and that you earn interest while the position is in cash – so a strategy that only matches buy and hold is actually doing slightly better.

Test on a group of stocks

A large gain or loss on one stock says little about the strategy. Apply it to a group of stocks: set Apply to on the Strategies tab to all companies and click Run. Then choose Report > Summarized Performance and click Calculate to see the average return for the group.

Consider the market trend

When the whole market is falling, many strategies show losses. That does not make them bad. Compare the result with the change in the major indices over the same period.

Check the signals on the chart

Look at where the strategy places its Buys and Sells and whether they are close to the best points. Try adjusting the strategy parameters on the Strategies tab and run it again.