Passive income with  auto trading algos

Defined as time-weighted return (TWR) that measures the performance of a dollar invested in the system since inception.

TWR measurement is requred by the Golbal Investment PErformance Standards published by the DFA Institute. Its distinguishing characteristic is that cash inflows, cash outlfows and amounts invested over different time periods have no impact ont he return.

Profit factor is calculated by dividing the gross profit by the gross loss (including commissions) over a certain period. A profit factor greater than 1 indicates that the system is profitable, with higher values representing a more profitable trading system. A profit factor less than 1 indicates a losing system. Essentially, it reflects the relationship between risk and reward by comparing the amount won to the amount lost in trading transactions.

Drawdown measures an investment's peak-to-trough decline, indicating risk and potential loss. For instance, if an investment drops from $1,000 to $900 before recovering, it has a 10% drawdown. This metric is crucial for assessing the risk and stability of an investment strategy.

Win rate refers to the percentage of trades that are profitable. It's calculated by dividing the number of winning trades by the total number of trades, and then multiplying by 100 to express it as a percentage. For example, if a trader makes 100 trades and 60 of them are profitable, the win rate would be 60%. It's an important metric for assessing the effectiveness of a trading strategy, but it's also crucial to consider it in conjunction with other metrics like risk-reward ratio and drawdown to get a comprehensive view of the strategy's performance.

Day Win %, in the context of trading, typically refers to the percentage of active trading days that are profitable over a certain period. It's calculated by dividing the number of profitable days by the total number of trading days within the specified period, then multiplying by 100 to express it as a percentage. For instance, if a trader had 20 profitable days out of 30 total trading days, the Day Win % would be approximately 66.67%. This metric helps traders understand the consistency of their strategy's success on a daily basis.

The Average Daily Return is a metric that calculates the percentage return of an investment for each trading day over a specific period. This calculation only includes the days when the market is open, not weekends or market holidays. It's determined by summing up the daily returns on these open market days and then dividing by the number of these days. This measure gives investors an insight into the typical performance of their investment on a day-to-day basis during trading days, offering a detailed view of how the investment's value typically fluctuates on days the market is active.