Time Analysis

Time metrics describe how long trades last, how often they occur, and the overall backtest period.

Quick Reference

MetricFormulaUnit
Avg BarsAverage bars_in_trade across all tradesbars
Avg Win BarsAverage bars for winning tradesbars
Avg Loss BarsAverage bars for losing tradesbars
Backtest Years(Last Trade - First Trade) / 365.25years
Trades Per YearTotal Trades / Backtest Yearscount/yr
Avg Trade DurationMean trade durationhours
Median Trade DurationMedian trade durationhours
Avg Time Between TradesMean gap between consecutive tradeshours
Exposure %(Time in market, overlaps counted once / Total time) × 100%

Key Metrics Explained

Trades Per Year

How frequently the strategy trades. This directly affects the Confidence Score — higher trade frequency produces more data points and more reliable statistics.

FrequencyWhat it means for your Confidence Score
HighEnough trades each year that annual statistics settle down. The strongest case.
ModerateWorkable, but a single unusual year still carries real weight.
LowThin annual samples — treat year-to-year differences with caution.
Very lowToo few trades per year for annual statistics to mean much on their own.

Confidence rises smoothly with trade frequency rather than stepping at fixed cutoffs, so there is no single number to aim for. More trades per year, over more years, is always 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

Low trade frequency hurts your Confidence Score. 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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