Time Analysis
Time metrics describe how long trades last, how often they occur, and the overall backtest period.
Quick Reference
| Metric | Formula | Unit |
|---|---|---|
| Avg Bars | Average bars_in_trade across all trades | bars |
| Avg Win Bars | Average bars for winning trades | bars |
| Avg Loss Bars | Average bars for losing trades | bars |
| Backtest Years | (Last Trade - First Trade) / 365.25 | years |
| Trades Per Year | Total Trades / Backtest Years | count/yr |
| Avg Trade Duration | Mean trade duration | hours |
| Median Trade Duration | Median trade duration | hours |
| Avg Time Between Trades | Mean gap between consecutive trades | hours |
| Exposure % | (Time in market, overlaps counted once / Total time) × 100 | % |
Key Metrics Explained
Trades Per Year
How frequently the strategy trades. More trades per year means more data points behind every statistic in your report.
| Frequency | What it means for your statistics |
|---|---|
| High | Enough trades each year that annual statistics settle down. |
| Moderate | Workable, but a single unusual year still carries real weight. |
| Low | Thin annual samples — treat year-to-year differences with caution. |
| Very low | Too few trades per year for annual statistics to mean much on their own. |
As a general rule of statistics, more trades over more years is better evidence.
Avg Win Bars vs. Avg Loss Bars
Compare how long winning trades last vs. losing trades:
- Winners last longer: Typical of trend-following strategies that let profits run
- Losers last longer: May indicate poor stop-loss management — losing positions are held too long
- Similar duration: Characteristic of mean-reversion or time-based exit strategies
Exposure %
What percentage of total time your capital is deployed in trades. A 30% exposure means your money is at risk 30% of the time.
Info
Higher exposure doesn't necessarily mean better. The Efficiency Ratio (CAGR / Exposure %) measures return per unit of time in the market. A strategy earning 15% with 20% exposure is more efficient than one earning 20% with 80% exposure.
Backtest Years
The total length of the backtest period. Longer backtests generally produce more reliable statistics, especially for strategies with low trade frequency.
Tip
If your strategy only trades a handful of times a year, treat every result with extra caution — there isn't enough data in any single year for the statistics to settle.
Tip
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