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Capstone Trading

Tradestation 10 - Backtesting Trading Systems by Reviewing the Performance Summary


Once a strategy has been built, backtesting a strategy before automated trading to understand how the strategy works over many years of data and trades can be viewed in the Tradestation Performance Summary.


The Tradestation Performance Summary will give important statistics that will give a view of the risk as well as the potential profit. While past performance isn't indictive of future results, starting with a starting with a strategy offers us a framework of risk and expectations so that when live trading occurs, we can know how to manage and stay with a strategy.


Performance statistics include:

Total Net Profit

Gross Profit

Gross Loss

Profit Factor

Total Number of Trades

Winning Trades

Losing Trades

Even Trades

Average Trade Net Profit

Ratio Average Win to Average Loss

Largest Winning Trade

Largest Losing Trade

Net Profit as a Percentage of Largest Loss

Maximum Consecutive Winning Trades

Maximum Consecutive Losing Trades

Average Bars in Winning Trades

Average Bars in Losing Trades

Return on Initial Capital

Return Retracement Ratio

Sharpe Ratio

RINA Index

K-Ratio

Trading Period

Percent of Time in the Market

Time in the Market

Longest Flat Period

Maximum Drawdown

and many more.


There is a Performance Summary, Trade Analysis, Trade List, Periodical Returns, Performance Graphs, Trades Graphs, and Settings tabs.

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