Ludwig J. Marx

What a track record supports

Paste a list of closed trades and get each figure with the range its sample allows.

The question

  • A track record arrives as a win rate and a profit factor. Neither figure says how many trades produced it, and on forty trades chance produces most of the pairs that get quoted.
  • Twenty-four wins in forty is a rate of 60 percent. The range that sample supports runs from 44.6 to 73.7 percent, and a coin sits inside it.

How to read the table

columnwhat it is
valueWhat these particular trades did. Not in dispute.
95% intervalThe range the true figure is compatible with, given how few trades there are. A short record has a wide range.
same figure in PythonThe identical calculation, run beforehand by mesura and shipped with the package.
the sentence below each rowThe same thing in words, including what it means when a coin or a break-even point sits inside the range.
  • The Python column is filled for the built-in examples only. A list you paste has no second column: Python does not run in a browser.
  • A resampled bound agrees to the last bit. A Wilson bound agrees to about 1e-16, because the z value comes from Python's inverse normal on one side and from an approximation on the other. The page prints which of the two it is.

Where the intervals come from

figuremethodwhy that one
win rateWilson score intervalThe textbook normal interval puts the upper bound above 100 percent on a high rate and a short sample, which is where a record is usually quoted.
profit factor, payoff ratio, expectancypercentile bootstrap, 20000 resamplesRatios of a heavy-tailed sample with no usable closed form, so the range is measured by redrawing the same trades rather than assumed.
break-even win rate1 / (1 + payoff ratio)An identity, not a measurement. It ignores costs: a record that breaks even before spread and commission loses money after them.

What it cannot answer

  • Whether the record beats chance. A coin flip has to be flipped against a market, and a list of closed trades does not carry one: the prices that were not traded are missing.
  • Nothing you paste leaves the browser. There is no request, no upload and no storage, which the network tab will confirm.

Source