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#'''Shuffled Trades Analysis''' – each simulation for this type of analysis is created by random shuffling of the base equity curve trades. The possible outcomes are ABCD, ACDB, BCAD, DABC etc. (each trade can be used only once per simulation).
#'''Distribution Analysis''' – any trade from the base equity curve can be used multiple times in one simulation for this type of analysis: ABCD, AABB, ACDC, ABBA, DDDD.
*'''Setting up the parameters.'''
Parameters of analysis that can be defined by a user:
#'''Number of simulations''' – the number of simulations generated. Minimum number is 10 for both types of analysis, maximum number for Shuffled Analysis is 100, for Distribution Analysis – 10,000. These settings have been chosen experimentally, 10 is the minimum number of simulations, which gives an approximate idea of characteristics distribution. An increase in the number of simulations above the maximum 100 and 10,000 does not lead to a significant change in the results of the analysis and the difference is within the margin of error. Recommended values are set by default: 100 for Shuffled, 1000 for Distribution.
#'''Number of trades''' – the number of trades in one simulation, calculated in % of quantity of base equity curve trades, default value = max value = 100%. The number of trades in simulations can be decreased when processing large amounts of data (e.g. hundreds, thousands or millions of trades) to speed up the results. Practice shows that with large amounts of data a decrease in the number of trades per simulation does not lead to a significant difference in the results due to random selection of trades while forming the simulations.
*'''Start the analysis.'''
Start the analysis by clicking “Run Analysis” button.
*'''Results of the analysis.'''
Results of the analysis are presented in different tabs for different types of analysis.
#For Shuffled analysis they are presented as a graph , in which all of the generated simulations are plotted along with the base equity curve. As simulations are generated by shuffling the trades of the base equity curve, most of the characteristics (net profit, gross profit, gross loss) will coincide for all of the simulations, so the analysis is aimed at evaluating risks through extreme and average MaxDrawDown values. Curves with the Largest and Smallest MaxDrawDown values are highlighted with different colors.
#For Distribution Analysis the results are presented as a graph or table of normal distribution of statistical parameters selected by a user.
'''X-Axis'''
The horizontal axis of the Distribution Analysis graph shows the share of simulations (in %) the characteristics of which are below the value of Y-axis. For example, if you select 1000 as the Number of Simulations for a Net Profit graph (as at the screenshot above), the point A means that the Net Profit value of 500 of the simulations will be below $90,440, and Net Profit value of the remaining 500 simulations will be more than $90,440.
This graph also allows you to see both best and worst case scenarios to evaluate the risk/reward ratio of your strategy.
'''Y-Axis'''
The vertical axis of the Distribution Analysis graph displays the parameter selected for the analysis such as Net Profit, Max Drawdown, Gross Profit, etc.
