StratiZone
Glossary of Terms
Asset Class
A group of securities or investments that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. Examples on StratiZone include Crypto, Stocks, Forex, Futures, Indices.
Backtesting
The process of applying a trading strategy or analytical method to historical data to see how accurately the strategy or method would have predicted actual results. Performance metrics on StratiZone are often derived from backtests.
Drawdown
The reduction in account equity from a peak to a subsequent trough. It represents the capital loss experienced during a specific period. See also Max Drawdown.
Indicator (Script Type)
A type of script primarily used for technical analysis that plots data visually on a chart (e.g., Moving Averages, RSI, MACD) to help traders make decisions. It typically does not generate automated buy/sell orders itself.
Library (Script Type)
In Pine Script™, a library is a special script containing functions that can be reused in other indicators or strategies. Libraries promote code reusability and organization.
Max Drawdown (Max DD)
The maximum observed loss from a peak to a trough in portfolio value during a specific period, before a new peak is attained. It's usually expressed as a percentage of the peak account value and indicates the greatest loss streak experienced. Lower is generally considered better, indicating less risk during the tested period.
This is a required field for strategy submissions on StratiZone.
Platform
The specific trading software or programming environment for which a submitted script or strategy is designed. Examples include TradingView (Pine Script), MetaTrader 5 (MQL5), MetaTrader 4 (MQL4), Python, NinjaTrader, etc.
Profit Factor (PF)
A performance metric calculated by dividing the total gross profit from winning trades by the total gross loss from losing trades during a specific period. A value greater than 1 indicates profitability over the period. For example, a Profit Factor of 2 means gross profits were twice the gross losses.
This is a required field for strategy submissions on StratiZone.
Repainting (Indicator/Strategy)
An undesirable behavior where an indicator or strategy changes its past values or signals as new price bars arrive. A repainting script might look perfect in hindsight because its historical plot adjusts based on future data, but its real-time signals would have been different. Non-repainting scripts provide signals based only on data available up to that point in time.
Sortino Ratio
Similar to the Sharpe Ratio, but it measures risk-adjusted return focusing only on downside volatility (risk of losses). It differentiates harmful volatility from total overall volatility by using the asset's standard deviation of negative portfolio returns (downside deviation) instead of the total standard deviation. A higher Sortino Ratio is generally considered better, indicating less "bad" volatility relative to returns.
This is an optional field for strategy submissions on StratiZone.
Strategy (Script Type)
A type of script designed to generate specific buy and sell signals based on defined rules. In platforms like TradingView or MT4/5, strategies can often be backtested and may provide performance metrics based on simulated historical trades.
Timeframe
The specific time interval represented by each bar or candle on a chart (e.g., 1 minute (1m), 5 minutes (5m), 1 hour (1H), 1 day (1D)). Strategies and indicators are often designed or optimized for particular timeframes.
Total Return (%)
The total percentage gain or loss of a strategy or investment over a specific evaluation period. It includes capital gains, dividends, and interest, expressed as a percentage of the initial investment.
This is an optional field for strategy submissions on StratiZone.
Win Rate (%)
The percentage of total trades taken during a specific period that were profitable (closed with a gain). It is calculated as (Number of Winning Trades / Total Number of Trades) * 100.
This is a required field for strategy submissions on StratiZone.